Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Precious metal company Warrants -- Ignore unavailable to you. Want to Upgrade?

To: TheBusDriver who wrote (542)	4/28/2006 10:46:40 AM
From: Nevada9999	Read Replies (1) \| Respond to of 681

Very good question Wayne. When I have held Canadian warrants in the past I have been told that it was fine to hold or trade them, but I would not be able to exercise them for stock. That never bothered me. However if Chesapeake is unable to get a listing on the rights, exercise would be the only option I believe. OTOH, Canadian warrants are generally issued in financings that are not available in the US. Only qualified investors (rich folks, basically) can participate, or something like that, I am not totally clear on this. In the case of CKG/AAU they will be issuing these warrants and rights to a lot of US retail investors that are shareholders. I would think they would need to make some sort of accommodation, or at the very least warn US shareholders. So in other words, I don't know, but it sounds like a valid concern. A worthy question for Randy or Claude maybe. As an after thought, thinking about this just reminded me of this pertinent sentence from the merger PR: "In the Letter Agreement Chesapeake has agreed to use its best efforts to obtain a stock exchange listing for the Warrants and Rights. If the proposed listing of the Rights is not obtained, within 60 days after the closing of the business combination, the exercise price of the Rights will be reduced to nil."