Francis,
I don't think there would have been a deal without that "out". Would you lend money to a junior mining company at 8% ? I think not.
As far as slamming the stock. It is not to Select's advantage to dump all the stock at a lower price. They dumped enough to shake out the loose shares, and probably started buying back at lower prices very slowly (keep the price down). You don't give someone $10 for x shares then dump the shares at a discount. Doesn't make any sense. The higher the share price, the more select will make. They make on the original loan (10% up front), they convert to stock, sell just enough, quick enough to tank the stock, and buy back more over a period of time a at cheap prices. When they're done, the stock will get promoted and they will sell into the promotion.
I have not looked at the chart, so I don't know what happened, but if you think it through, I think my logic makes sense.
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