Tks fer your reply...Your points are well taken...
I do not necessarily agree with you that those doing financings are taking "a lot more risk"...Relatively speaking, many investors are taking a greater risk than those involved in the financing...They are putting up, in some cases, fairly substantial monies to acquire their positions...AND, they do not get the special discount NOR the attached warrants along with their investment...
There are "contracts", and there are "contracts", and there are "contracts"...There are "step" contracts, "phase" contracts, "Right of First Refusal" Contracts, etc, etc, etc, ad finitum...There are "contracts" for anything imaginable..As long as you have two people who can sit across from each other and say to themselves "I have something you want/need..", then you can write up a contract accordingly with which each can agree...
In this particular instance, if it is in fact the case, we would seem to have the financiers saying "We believe there's a good probability you have the goods", while the company would appear to be implying, "Well, we're just not sure.."
I don't buy into the scenario that Manhattan company officials are too just busy or have better things to do....
I still feel the financings should be for staged, smaller blocks of stock , as required, as the drilling program progresses...
Financing for the feasibility program should be the subject of separate consideration...Once the decision is made to proceed to that step, the ante is upped considerably and there is a certain reduction to the "risk" as we would define it at the present point in time...
Regards....Ray |
