Athabasca Oil Corp T.ATH

Second Thoughts

[ManitobaCanuck]

Apparently the dilution is cashless exercise of warrants .
FOR EXAMPLE 
if the holder is exercising 100,000 Warrants with a per Warrant exercise price of $0.94 per share through a cashless exercise when the Common Stock's current Market Price per share is $1.88  per share, then upon such Cashless Exercise the holder will receive 50000 shares of Common Stock. 

If Athabasca Oil goes to 1.8$ then dilution is 7.5%
If Athabasca Oil goes to 9.4$ then dilution is 13.5% 
Please correct my math here .
In short the lenders have taken thier pound of flesh , but atleast some is left on the table for other shareholders .

[Chris007]

Math checks out $1.8 Price Scenario (assuming all warrant holders exercise at same time) (227 shares x 350,000) = 79,450,000 (1.8 - 0.9441) x 79,450,000/ 1.8 =37,778,475 37,778,475/530,675,391= 7.12% dilution   $9.4 Price Scenario (assuming all warrant holders exercise at same time) (227 x 350,000) = 79,450,000 (9.4 - 0.9441) x 79,450,000 / 9.4 = 71,470,346 71,470,346/530,675,391 = 13.47

[ManitobaCanuck]

Thanks Chris :)