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Gold/Mining/Energy : Darnley Bay Resources - DBL. VSE
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To: Willithit who wrote (86)9/24/1998 6:55:00 PM
From: Grant Baker  Read Replies (2) of 221
 
Will, News out - Series B warrants become free trading tomorrow.

Holding the stock under $.85 effectively means that the existing Series B warrants will not be exercised. At the current share price of only $.45, there would have to be at least a rise of $.40 before September 30th in order to put the warrants "in the money".

If what you say is true, that someone else is trying to arrange new financing (at probably lower levels to increase the number of shares they will hold), I don't expect that the share price will climb anywhere near $.85 anytime soon.

All of this might help to explain something about that rise in share prices earlier this week - someone probably wanted to make sure the warrants got exercised. (No doubt, the company could probably have used the $1.4 million that would have been realized if the warrants were converted to shares.) But someone else stepped in and either shorted enough shares to bring the price down, or they simply bid the share price down. The end result is that the warrants will probably expire worthless, and the new financing will have to be for more shares at a lower price.

Isn't it wonderful how the markets work! Some things are just so transparent!

Regards.

Grant.
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