Cline Mining Corporation T.CMK

For the hopefuls

[bond46]

The first trance of bonds worth 25million dollars with be converted into common shares a total of 2billion. For the second trance of bonds which can be redeemed in 2016 there is going to be issued rights or warrants that must be exercised by 2016 or if the company is sold by the day before the sale takes place. The exercise of warrants will yield to Cline 35million dollars from which money Marret will get paid for the rest of the bonds. If that happens Marret will own I think 55% of the stock and the shareholders 45%. If the current shareholders don`t exercise the warrants and buy additional stock at 2cents a share so they can keep up with the dilution, then Marret will convert the rest of the bonds into common stock to a total 1.7billion shares and the current shareholders will own only 10% of the stock. In other words the small guys, unless they add more money into the stock, will lose their investments or their stock will be worthless. So if we are going to keep up with the dilution we must buy more shares or else the 10% of stock of the new float will be worth nothing. Now, if the company does well and starts production and accumulate profit as `retained earnings``then it can buy back shares and reduce the float back down to 200million shares. In this case if Marret does not want to stay in the coal business, they can sell the mine and get out. This however will take 2 to 3 years to play itself out. So the real question is who is going to put more money into this hole, so the Marret bondholders can recoup their money.

[riverrocks]

I wonder how i would be able to buy more if i wanted too OR AM FORCED TOO? I have maxed my RRSP accts and my TFSA ?  

[mjm101]

I would like to know this to.  Will I be forced to buy 8 shares per share at 2 cents?  

[shane117]

NO! You don't have to buy anything. It will be an option. But after dilutiopn if oyu don't you will have a smaller piece of the pie.