I continue dig in financial situation of Gabriel and my new findings are:
Actual cash position at the moment roughly: $3,792,000.00.
but there are tons of outstanding warrants and options:
(b) Options and warrants outstanding:
Number ExercisePrice ExpiryDate
Options 1,000,000 $1.00 April 8, 2002
Options 600,000 $1.58 May 6, 2002
Agents' Options 117,500 $1.40 December 31, 1998
Special warrants(1) 2,000,000 (2) March 27, 1998
Special warrants(1) 200,000 (2) March 27, 1998
Special warrants(1) 539,260 (2) March 27, 1998
Special warrants(3) 1,175,000 (4) September 3, 1998
Special warrants(3) 76,375 (4) September 3, 1998
Special warrants(3) 145,831 (4) September 30, 1998
Notes: (1) These special warrants, issued for the private placements dated April 11, 1997 (2,000,000 and 200,000 special warrants) and April 25, 1997 (539,260 special warrants), will each be exercised for 1.1 units, or 2,200,000, 220,000 and 593,186 units respectively. Each unit consists of one common share and one half share purchase warrant.
(2) Each whole share purchase warrant entitles the owner to acquire one additional common share for a period of two years, at a price of $1.10 per share on or before March 27, 1998 or $1.20 per share on or before March 27, 1999.
(3) These special warrants (see details in 2(a)(ii) above) will each be exercised for units consisting of one common share and one share purchase warrant.
(4) Each share purchase warrant entitles the owner to acquire one additional common share on or before December 31, 1998 at a price of $1.40 per share.
(c) Escrow shares: 500,000 Performance shares are held in escrow.
Since the company had 23,830,833 common shares outstanding, these are ones being bought by Peruvian-date March 26. What about the warrants? Check the date some of warrants expired on March 27/98. If this group of warrants was exercised automatically there are 3,013,186 new shares of Gabriel on March 27/98 plus potential of new 1,506,593 shares from half warrants on the same date which could bring $1,807,911.00. This is just one group. Other ones expire in September and there is 1,397,206 shares which could bring another 1,397,206 shares and a value of $1,956,088.
What is a legal position in takeover process in regard to outstanding warrants? I believe they have to be translated into PVO shares. If this is the case by December 31/98 PVO will have almost 59 million shares. To that date Gabriel would have $7.6 million raised including current cash. Plus $12.8 million of PVO, that is $20 million for 1998/99 to play with.
It is interesting that agents for those pps of Gabriel, are Yorkton and Goepel Shields & Partners? The same Goepel Shields was hired to do dd for PVO in pursuit of new properties?
Greystar Resources (GSL) have approximately 50 million shares outstanding and also claim resource of 4 million oz. in Colombia. Their cash position is of $18 million. They trade within 0.80-1.00 at the moment.
I am confused even more.
Robert |
