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Gold/Mining/Energy : KOB.TO - East Lost Hills & GSJB joint venture -- Ignore unavailable to you. Want to Upgrade?

To: Salt'n'Peppa who wrote (12057)	9/28/2000 8:21:57 PM
From: Salt'n'Peppa	Read Replies (1) \| Respond to of 15703

Further thoughts on the KOB financing... Why did this revision take place? KOB obviously needs cash to fund it's portion of ongoing ELH exploration. I honestly think that KOB management expected BKP #2 to have hit by now. The Sept 18th NR, the same day as a large cross of KOB stock, indicated that insiders would purchase the units at $1.20. They clearly believed that the KOB share price would go higher than $1.20, and it did, for a couple of days. However, delays cropped up, the KOB share price dropped, and that $1.20/unit price didn't look so attractive anymore. Presented with a much lower current share price, a new deal was formulated and quickly implemented, since KOB still needed funds and needed them soon. The PP, as stated on Sept 18th, was for $600,000 to purchase 500,000 units @ $1.20, each unit carrying a share and a half warrant. The total dilution would have been 750,000 new shares, raising $900,000 (after exercising the warrant). The PP, as announced today, is for $636,000 to purchase 600,000 units @ $1.06, each unit carrying a full warrant. Total dilution is 1,200,000 shares, raising $1,272,000. From the point of view of the "insider" that took down the PP, today's revision is a great deal. From the point of view of the KOB shareholder, the revision is very slightly less attractive than the original. Any other thoughts? S&P PS: The fact that "insiders" bought the PP again increases my confidence in ELH (as if I wasn't confident enough already!). PPS: I wonder if KOB is still planning to do it's 10 for 1 rights offering. PPPS: Where is my flare, dammit?