Tomato, Shirley, & Others,
Tomato, your idea about working together on this thread to elect a shareholder oriented board member is sounding better to me all the time. I would support either one of you if you were so inclined.
While it may be true that options gouging by management is a more widespread than just companies on the VSE, I am still personally very troubled by the what has happened here. My understanding is that about three months ago, WSP management solicted significant private
placement investments in the mid 3 dollar range from private investors. After the placement closed the stock ran up even higher, to the mid 4's on good volume. The 5 year options in place at that time were 3.66. Just three months later management does not want to stand shoulder to shoulder with hard money investors on their substantial options positions, which already had tremendous upside potential. Instead, they unilaterally convert their 5 year options to 1.62. I just can't fathom how you can do that to people you solicited investment capital from just 3 months ago. Sure it's speculative capital that was invested. Yes we take high risks in this sector. But we want and are entitled to have our investment capital to be handled with integrity.
If other junior resource co.s behave like this in a post Bre-x environment, revising existing option prices significantly downwards after things don't go their way in the short run, it could seriously undermine the long term prospects for investing in the industry. WSP management's mission is not that broad of course. But part of their mission is to exercise fiduciary responsibility towards its shareholders, and not walk all over our interests in a weak market.
If I am missing something factually here, please let me know. I am long WSP and still optimistic that they can prove up a big pipe, or economic dykes. Good Luck to all WSP shareholders and management.
Larry |
