Bill:
Maybe Jim Cox might be able to shed some light........I know he was pretty close to management. Jim? You out there? Appears that the natives are getting restless, and could use some of Pat's insights, in case you've been talking to him. Pretty good questions Bill......I know my boss would be looking for answers to those types of questions. And if I couldn't provide them, I'd be dust. It appears that after a year of josteling for position, we have nothing to show for it. At least not on the surface. So we have these rights offerings......
Subject:
Stockwatch: NovaWest Resources Inc - News Release
Date:
Fri, 14 May 1999 17:05:37 -0700
NovaWest rights offering
NovaWest Resources Inc NVE
Shares issued 15,299,342 May 14 close $0.40
Fri 14 May 99 News Release
Patrick O'Brien reports
The board of directors has authorized the company to distribute its
shareholders' rights to subscribe for a total of up to 2,549,890 common
shares and up to 1,274,945 warrants. Shareholders of record as of the close
of business on May 26, 1999, will be granted the transferable right to
subscribe for additional common share units of the company at a
subscription price of 40 cents per unit. Each unit will be comprised of one
free trading common share and one half of one warrant. The rights will be
evidenced by transferable rights certificates registered in the names of
holders of common shares of record on the record date on the basis of one
right for each common share held, six rights and the sum of 40 cents being
required to subscribe for one additional common share and one half of one
warrant. The rights will expire at 4 p.m. on July 7, 1999. One whole
warrant will entitle the holder to subscribe for one common share at any
time on or before 4 p.m. (Vancouver time) Nov. 15, 1999.
There will be no minimum subscription for this offering. The company will
not issue fractional units so fractional units will be rounded down to the
nearest whole number. The rights will be listed on the Vancouver Stock
Exchange and will be posted for trading until 9 a.m. (Vancouver time) on
May 20, 1999.
Each right carries the right (by way of oversubscription privilege) to
subscribe at the subscription price for additional units provided that the
rights holder has exercised his or her rights in full. All rights holders
who fully exercise their rights under the subscription privilege will be
entitled to exercise additional rights under the oversubscription
privilege. Subscriptions and funds for excess units should be submitted at
the time the rights holders submit their initial subscriptions for the full
amount of their own rights.
No soliciting dealer has been retained for this rights offering and no
commission, fee or other remuneration is payable with regard to this
exclusive privilege to the company's eligible shareholders.
This offering of rights is not being registered in the United States or in
any jurisdiction in Canada other than in the provinces of British Columbia,
Alberta, Saskatchewan, Manitoba and Ontario, therefore it is not to be
construed as an offering of any securities for sale in or to a resident of
a Canadian province or territory, other than in the provinces of British
Columbia, Alberta, Saskatchewan, Manitoba and Ontario, or to a national or
resident of the United States of America (ineligible shareholder). The
company will not accept subscriptions from an ineligible subscriber.
Shareholders of record resident in the United States or in Canada outside
the provinces of British Columbia, Alberta, Saskatchewan, Manitoba and
Ontario will not receive rights certificates. In lieu, thereof, Pacific
Corporate Trust Co., as subscription agent for the rights offering, will
use reasonable efforts to sell the rights and the net proceeds, if any,
will be mailed to the shareholders on a pro rata basis.
Holders of the rights certificates may subscribe for units by completing
the subscription form in the circular and delivering them together with
payment of 40 cents per unit subscribed for, to the principal office of
Pacific Corporate Trust Co., in Vancouver not later than 4 p.m., July 7,
1999.
The amount of 2,549,890 common shares will be issued if all rights are
exercised. A further 1,274,945 common shares will be issued if all rights
are exercised and all warrants comprising part of the units are exercised.
If all rights are exercised, the proceeds to the company, before deducting
expenses of this offering, will be approximately $1,019,956. A further
$509,978 will be received if the rights are fully exercised and all the
warrants comprising part of the units are exercised for common shares.
Proceeds derived from this rights offering, less estimated costs of the
offering of approximately $20,000, will be allocated to general working
capital.
Common shares and rights and warrants under this offering will be qualified
investments within the meaning of the Tax Act for registered retirement
savings plans, registered retirement income plans and deferred profit
sharing plans as defined thereunder.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
Even as a long term supporter of NVE, I'm hesitant to put ANY more cash out (And I did tell this to Pat, last time we spoke) without a corporate game plan, to say where it will be used.
Now this all sounds fine, but what will happen to the funds raised and where will they go. "day to day operations" of the company, doesn't hold water. After all, how many dilutions, and/or private placements are needed to fund the office.? It appears, and I say that respectfully, to NVE, until proven otherwise, that there are NO programs on the go, that would require funding. If there are, they are being awfully quite about them. I don't hear any drills turning, or goe's being flown. Of course, there are the usual legals and stuff that chew money up, but I would say that "we don't need any more properties in the fold", (IF in fact, that's what the money is for) until we enhance share value, by doing something CONCRETE with the ones we have. Hell, if we don't have the coin to develop em, lets just blow some of them out, (I seem to recall Falco was interested in Raglan) and start developing the ones we have. No sense holding all this great property, if its only worth 35 cents a share. Nickel has been escalating in value, if you believe what is printed in the Post. Why then are we stuck at this level, if not artifical manipulation of some sort? I'm not accusing...........I'm asking......cause I don't know. I'm afraid if Novawast wants any more of my funds, rights offerings or not, it will have to be justified. At .35 cents, why will I buy shares for .40.......unless the company can give me a reason why they will be worth 1.00 or even 2.00, and not .20-.25 like they have been. I'm investing in Nova for the property, and management, not for shifty share blow outs, on rights, and warrents.
Jim.......you out there.? Hell, if a long time supporter like me is asking questions, and getting antsy, NVE's support may be in more trouble than they might think. Not that I'm any kind of "market" barometer, (like all stocks, we retail little bimbos are disposable, lets not kid anybody) but I don't think there is anyone that has been posting to this thread longer (and more supportive) than I have. There's gotta be hundreds of retail holders like me out there, that yes, can hurt a stock, without the company's support. Not intentionally, or maliciously, but just by giving up. Ask Mr Lowen, or Mr Phillips........... sorry for the ramble, but its Saturday afternoon, and qualifing for the Monaco Grand Prix, hasn't started yet. I'm bored.........
take care.
Mike |
