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 : Pure Gold Minerals (PUG)-TSE -- Ignore unavailable to you. Want to Upgrade?

To: ddl who wrote (564)	4/30/1998 9:20:00 AM
From: Jamie	Read Replies (1) \| Respond to of 1030

At the time the offering was announced there was no way of knowing what the stock price would be at the exercise date, nor any way of knowing what the demand for the offering would be. Had more shareholders thought exercising to get the warrant was worth it, there would not have been shares available for the oversubscription. The warrants were not "free", as the shares could have been purchsed below $1 on the market. The waarants were an incentive to encourage a successful financing. The alternative for the small shareholder would have been a cheap pp to insiders, with options set much more attractively than the warrants(this is likely in the works now). I don't follow your reasoning that the warrants have "cost" the shareholders, as should the shares be at or below $1.25 in October they will be wothless to holders.