For those holding ORM, I came across an interesting post by
Coach 247 from Stockhouse Bullboards.
John
Hi McBean!
I do not have page numbers on my report, but go to section 5a) 7,500,000 special warrants issued of .001 each (thats right $1 per thousand shares!) each exchanged for one share of ORM. These shares were then placed in escrow, with 1/10 released on Nov 18, 2003 and 1/6 set to be released on May 18, 2004.
5b) 500,000 special series B warrants issued for 25 cents each, exchangeable into one common share any time after the closing of a PP
5c) 2,219,927 series B warrants at 35 cents each, 20% released each month after the listing on the TSX-V. This means almost half a million cheap shares dumped into the market potentially on the 18th of December, January, February, March, and April.
5e) the Oct 14/03 IPO issued 5,000,000 shares and 2,500,000 warrants at 50 cents per unit. These units became free trading on or about Feb 14/04.
Now I am not trying to bash the company. I own shares and have not sold. I am disappointed by the amount of cheap paper that has hit the market and IMO held back the shareprice. Not all the shares issued cheaply as detailed above went to insiders. And probably not all available to be sold have since been dumped. But look at the trading action relative to the dates that shares were released and make your own conclusions.
What really irks me is the 350,000 shares paid as a finders fee relating to the aquisition of Minera Montana. This company was owned by Dale Sholz, the current CEO and President of ORM. Now a finders fee is supposed to be an incentive paid to an agent that arranges a deal or finds a partner to finance a project. In this case its basically money paid from the left hand to the right. Legal but very sleazy. How greedy does it look to you?
Would I give myself such a sweetheart deal in the same place? Of course if I put up the seed money and spent years in an uncertain market, investing my money and lifes work to aquire properties with no certain outcome of ever making money, then I would make the most of the opportunity to take the project public in a bull market. But I consider the finders fee on top of everything else to be too much.
Anyway I guess I am mostly disappointed with myself for not doing enough homework to smell this out. Yes I still consider ORM an excellent company with a clear shot at a major discovery. I just would have waited for the cheap paper to get sold off to other dummies before I jumped in. Its always better to be the hammer than the nail, and in this case I got in too early, paid too much, and got what I deserve for not doing the homework.
Cheers!
COACH247 |
