Eagle Hill Exploration Corporation V.EAG

Oban will need a share consolidation with 1.1 BILLION shares

[philway]

Not even including the dilutive options/warrants. Most for an explorer trading anywhere. Sound familiar when EAG did a 20 to 1 share consolidation?

  >New Oban will have approximately 1,105.9 million common shares outstanding on a post-consolidation basis <

[moonshot5]

I don't care about share counts as long as the price stays above 10, and preferably 15 cents. Actually, I have never really understood why people think share counts matter, but I seem to be the lone voice in the wilderness with this idea.

[handyrandy321]

Moonshot 1.1 billion shares (not even adding warrants and options) will mean mega continuous penny flipping for a very long time, and the increased likliehood of another share consolidation. Just look at Oban now BEFORE the consolidation. Barely moved, and actually retreated after the news

[tomgranite]

IMO a roll back will be done. I'm surprised they have not announced a roll back as part of the deal. Maybe they will do it after the agreement but before the actual formation takes place. Roll backs usually result in a fall in SP but given the strength of the company they may get away with it.

[TSX10Bagger]

ok but how much of a roll back because the warrants are my issue. I was going to sell the shares and hold my warrants.

[tomgranite]

I'm no expert, but 5:1 would be my guess i.e. around 220mil float. They have C$74mil in cash, so the question is how far can they progress the projects until the next lot of dilution will take place. If they can get Windfall Lake in to production within 4 years, then that will generate cash to fund developments at the other projects. Once the deal goes through Oban will give us a proper

[annwarw]

They will need several hundred million to 1 billion dollars to build anyting substantial. That cash will only pay for the bills and management salaries and fees for awhile. They will need a mega financing and the rollback before that happens.

[TSX10Bagger]

so 20 for 1 means that I would give up 20 shares and get 1 right? So the price will now be 20 times what I paid before? So my 5 warants per share are now worth 20 times the value and become and a no brainer to execute? Using the last example

[tomgranite]

If a roll back was done, the exercise price of the warrant would go up in the case you suggest, to $3.00