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Gold/Mining/Energy : T.ITE: iTech Capital (TSE) -- Ignore unavailable to you. Want to Upgrade?

To: Keith Minler who wrote (4098)	2/17/2000 3:28:00 PM
From: Keith Minler	Read Replies (2) \| Respond to of 5053

WARNING: HIGHLY SPECULATIVE RAMBLINGS FROM A DELUSIONAL SHAREHOLDER Further to my previous post about the possibility of having the company issue rights to existing shareholders as part of the next financing. Earlier rumours held that a placement would be done between $3 and $5 , I think that with the muscle this company has behind it they can, in the near future make $4. I would imagine they would like to raise at least $20 million.. It seems that a possible scenario might be as follows. Place a private placement of say 5 million shares at $4.00 with rights to purchase an additional 5 million at $4.00 for the next two years. This would raise $20 million immediately and possibly another $20 million over two years. This would not last too long in todays venture market. At the same time issue one right per share to all existing shareholders, with a conversion of say one share for every three rights and a purchase price of $4.00 with an expiry date of one year. There are I think about 35 million shares outstanding fully diluted. Which means that if all the rights were exercised then the company would issue about 12 million shares at $4.00; which means raising another $48 million. If they wanted to they could even offer the rights to existing shareholders at a nominal fee $0.10, that alone could raise $3.5 million. It would require the fine tuning of the lead underwriters to sort out the details(that's why they get their scandalous commissions), but having said that I think it works and everyone wins. We will be diluted no matter what, at least this way we can participate more fully, as can the insiders. Also I think this move would generate a lot of positive publicity. Itech is hardly a household name yet. Comments? Later Keith Edit: Actually; having thought about it for an extra ten seconds I think that they need to raise more than $20 million in the near future.