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Bullboard - Stock Discussion Forum Alio Gold Inc. T.ALO

"Alio Gold Inc is a gold mining company. It is engaged in exploration, development and production in Mexico. Its projects include San Francisco mine in Sonora, Mexico and the development stage Ana Paula project in Guerrero, Mexico."

TSX:ALO - Post Discussion

Alio Gold Inc. > ALO about to turn the corner in my view...
View:
Post by MisterB on Oct 16, 2017 3:13pm

ALO about to turn the corner in my view...

With warrants expiring Oct 19th, and none of the 1M warrants exercised prior to June 30th, we have seen a lot of selling pressure the past 3.5 months.  My view is trading patterns should return to normal and that this current level is an opportunity provided by the warrant situation.  After these are exercised, it will be 8 months before we are in another warrant situation, but the price must be well above $8 for those warrants to be exercised with meaningful value (considering strike price + cost of warrants on the market)...

Additionally, as intowin indicated before, news should be plentiful over the next few months, including drilling, perhaps debt financing, and then later the FS and contruction decision (which is already made imo)...

I see Oct as the last stop in the $5's -> moving steadily up to a more reasonable valuation...

ALIO GOLD INC.
(Formerly Timmins Gold Corp.)
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2017
WARRANT LIABILITY (continued)
b)
Private placement
On October 19, 2015, in connection with a C$6,000 ($4,616) non-brokered private placement with Goldcorp, the Company issued 1,000,000 share purchase warrants. Each share purchase warrant is exercisable for one common share of the Company at a price of C$3.50($2.70) per share for a term of twenty-four months. Following the eleven - month anniversary date, at
the election of the Company, the share purchase warrants would be subject to an accelerated cancellation period of ten days if the Company’s closing shareprice meets or exceeds C$6.00 per share for a period of twenty consecutive days.
Should the  Company elect to cancel the  warrants, payment to the  warrant holder would be required in the amount of the difference between the exercise price and the five-day volume weighted average share price for each warrant cancelled. As at June 30, 2017,and December 31, 2016,there were 1,000,000 of these share purchase warrants outstanding.share purchase warrants outstanding
Comment by intowin on Oct 16, 2017 8:16pm
I think you’re spot on. This warrant issue is a drag on the share price.  
Comment by bobofet on Oct 17, 2017 3:12pm
Warrants is a HUGE drag on the share price..... its a gigantic weight on Alio shoulders.... signed  but someday...
Comment by zzthnx on Oct 17, 2017 9:47pm
I noticed a pretty strong uptick on heavier than normal volume toward the end of the day today. If the drag has been Goldcorp cashing in warrants, maybe they're finally done, with the expiration date being tomorrow: ALO.TO 5.22 +0.08 +1.56% CAD 3:59 PM EDT 199.61k - 105.20k   ALO  ...more  
Comment by stopedout on Oct 18, 2017 1:25pm
The one million wts are all owned by GG. Unless they are a seller there should be no drag on the stock.
Comment by MisterB on Oct 18, 2017 4:21pm
From my view, GG owned 9.9% prior to the recent PP's,so I am not of the view that they are holding the shares obtained through warrant exercise.  That said, it's a crapshoot and no one knows for sure. So, we wait and hypothesize. For me though, I took this as an opportunity today and bought a swing position.  My expectation is they move up over the next 30d and well beyond. B