Artemis Gold Inc V.ARTG

Tons of Warrants

[AlwaysLong683]

While taking a look at ARTG's ARTG's stock information web page, I noticed:

193M shares outstanding

30M outstanding warrants at at average strike price of 1.08

I don't like to see warrants represent more than 10% of total shares currently outstanding.

ARTG's warrants equal 16% of total shares outstanding and the average strike price of 1.08 makes these warrants exremely dilutive to existing shareholders who may have purchased shares at a price much higher than 1.08.

The 10M options are very reasonable and understandable given they are often given as an added monetary incentive to Board or Management members, but the warrants (typically handed out to investors when doing equity raises) are way overboard IMO.

[metalhead666]

It doesn't matter at all unless you only care about short term implications.  Fully diluted there will be 230 million shares which isn't at all unreasonable for a fully funded project that will deliver more than 300k ounces with a margin of $1000 per ounce. That's at least $300 million in free cash flow or more than $1 per share and at $1600 gold....at $2000 gold the NPV is over 3