I have been racking my brains trying to comprehend how and why GXS has not moved higher, after yet another positive NR was recently put out by the Company on January 6, 2021. Yes, the price of gold has been hammered over $100USD since that time. And yes, most gold mining stocks have also pulled back since that time. But still. 0.12???
Tax-loss selling season is now over. So aside from the recent pullback in gold and gold mining stocks, I can only surmise that our share price weakness might be attributable to warrant holders, selling shares to raise needed funds to exercise their 0.09 warrants (set to expire on January 17, 2021).
The January 17, 2019 $0.05 financing consisted of 26,000,000 $0.09 warrants. I'm not sure how many of these warrants have yet to be exercised, but hopefully, there are not too many more. My understanding is that many of these 0.09 warrants were exercised over the course of 2020.
Regardless, Friday, January 15, 2021 is the last business day that these 0.09 warrant holders will be able to sell shares to raise funds to exercise their warrants. Hopefully, this coming week will be the last week of drifting aimlessly for GXS. Coupled with a rebound in the price of gold and more positive news, I'm confident that this will in fact be the case. Let's hope so.
2019
Goldsource Closes $1.3 Million Private Placement
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, BC – January 17, 2019 – Goldsource Mines Inc. (“Goldsource” or the “Company”) is pleased to announce the completion of its previously announced nonbrokered private placement whereby the Company issued a total of 26,000,000 units of the Company (“Units”) at a price of Cdn$0.05 per Unit for gross proceeds of Cdn$1,300,000. Each Unit consisted of one common share and one common share purchase warrant of Goldsource. Each warrant is exercisable to acquire one common share of Goldsource at an exercise price of Cdn$0.09 until January 17, 2021.
GLTA