Alaska Hydro Corp V.AKH.H

RE:RE:RE:RE:Do First Nations folks invest in Hydro - yes!

[BadgerBob]

Well now i find myself on your side Phoenix. Smoking81 obviously has not followed this long enough or deeply enough to understand just how much management has accomplished with a pittance of costs. To say the problem is management sucking salaries and expenses illustrates a very childlike understanding of AKH's issues. However the problem IS one of dilution. Cliff faced the same problem with Coast Mountain (MW) except with AKH it is more acute. Let's face it; building a project like FK and spending $1 billion to do it was not possible for a small company like MW. The question is where is the crossover point. Where does the dilution rate start to exceed the value added by advancing the project. MW was raising funds at $1.00 to $1.25 after years of work and eventually sold out at slightly over $2.00 ($45 million value). Cliff disagreed vehemently with the Chairman and all of the board members over the sale. The board realized that advancing the project further would likely dilute shareholders so substantially that they would be worse off in the long run. Cliff sued Nova Gold, spent serious legal funds and was ultimately defeated. Dilution is always a problem. Raising funds at $1.00 plus is a lot different than raising funds at 5 cents. If AKH needs another $20 million to get to the same stage as MW got to, how many shares will be outstanding and what total value will the ultimate developer pay for a project? I know Cliff would dearly love to build More Creek but if it comes at the expense of shareholders then and only then does Smoking81 have a point. You certainly can't sell $20 million worth of shares at 5 cents. And please don't argue that some one like Axium will sign a JV giving AKH a 30 or 40% carried interest. Axium will rip your face off. Any deal will likely bog down in a difference of opinion between Cliff and the buyer. That's what basically happened with MW. What is my problem Phoenix? I can't see where the dilution stops and I dislike it when you gloss over potential problems telling me and other investors that AKH will be taken over for mega millions.