Abcourt Mines Inc V.ABI

Abcourt private placement

[fbedard29]

Hi have any stockhouse posters considered investing in the private placement.
You have to be a qualified investors( $1m value or, or).
If Abcourt management are ready to invest 25% of the $1.5m pp they must have faith in the future.

Just a fast calculation of what could hapen.

If $10k invested at 0.10c = 100k shares + 100k warrants at 0.15c due in 3 years.
If the share price is at 10c in 4 months you lose nothing or if shares decreases to 8c you loose $2k.
If in 3 years the share price is 0.15c you make 50% of $10k= $5k
If the share price is at 20c in 3 years you make
  100k shares x 20c= $20k- $10kinvested= $10k profit  + 100k wt at 15c = $20k-$15k invested= $5k profit  =  $15k profit total
If shares are at 25c  100k x 25c= $25k- cost of $10k = $15k profit  and 100k wt at 25c= $25k- cost
$15k= $10k profit
net result if shares are at 25c in 3 years you would make $25k profit .

All that for a $10k investment that could depreciate by -$2k if the share price decreases to 0.08c or
$25k gain if share prices increases to 25c.
Think about it if you qualify.
Fernand

Fernand

[mariners13]

I recognize the value of warrants, but there is something to perhaps just purchasing at .09 right now. Especially if one does not qualify for the placement.

[fbedard29]

True mariners13 if you buy at 0.09 and in 3 years it goes to 15c you make 67% but if you buy at 0.10c in PP and it goes to 15c you make  50% and if it stays at 9c you loose 11% . The PP is worth it if you think the share price will be above 16c in 3 years.