October 6, 2023: Tectonic Metals (TETOF; T.TECT) announces an early exercise warrant program.
This is more significant than the headline appears and explains why the stock is popping on the news…
First, this incentivizes existing warrant holders to exercise their outstanding warrants now, which will bring more cash into the company’s coffer.
The incentive is another half warrant, but based on the 16 million outstanding warrants, this won’t amount to much dilution.
Second, based on prior news releases and by looking at the warrant holders, we can read between the lines on who is likely participating… the two largest shareholders are Crescat Capital and Doyon. Between the two of them they’ll probably take 80% of these warrants.
Further, since these are strong shareholders, it means they won’t be selling their existing shares, which would normally push the stock price down—you see the opposite is happening.
Last, you’ll notice the press release says the funds could be used for “some additional on-trend project opportunities.” This has been mentioned before, so it won’t be surprising to see a news release about some additional staking or an acquisition that is on trend with Flat.
Meanwhile, drills are still turning at Flat, and we’ll see news on that soon, too. Remember, Flat is part of the same intrusion related system that Snowline Gold has, making this a great speculation.
The stock is up strong on the news, with gold rising too. My stink bid has not been filled, but I’m leaving it there to see what happens over the next couple weeks, since assays won’t be till later. It’s entirely possible I won’t be filled if there’s other good news or gold is starting a run, but as I say in PAYDIRT, once you have a position you can be a little stingier with your bids. If you don’t have a position and like the potential here, add shares on the next dip.