Here are some quick calculations. Tell me if I am on the right track. Each special warrant gives 1 share and one half of a warrant. Each whole warrant will allow a purchase of another share at $1.30. (within 18 months)
eg. 10,000 units gives 10,000 shares and 2500 warrants to buy at $1.30. The gross revenue possible to be raised if all units are sold along with the extra allowable is $9,200,000.
This would also allow another 2,300,000 shares to be bought at 1.30 if the price goes beyond that. Potential dilution is
9,200,000 shares at $1.00 and 25% of this
2,300,000 shares at $1.30.
11,500,000 shares total potential dilution.
27,390,859 total shares outstanding now.
41.98% dilution if all warrants are exercised.
I speculate that YRI wanted these issued now because they are expecting the stock to run up above the exercise price in the very near future and this will raise a total of $12.19 million to extend their drilling of Santa Clause ...oops Cruize. Ho Ho Ho. Nice Christmas gift yes?
Any thoughts?
Ray |
