As I understand it, there will be a big chunk of shares held by GAX, and will be held out of the market. There will be another big chunk of shares issued in the IPO PP. The PP shares will have a 4 month hold on them and the shares held by GAX will not be traded. Where will the trading shares come from?

khareema,

there will be just under 9M shares in escrow with GAX for at least 6 month, 2M shares for the PP and 2M warrants.

If the PP closes BEFORE the IPO, the 2M shares could trade straight away AFTER the IPO (is a 4 months hold mandatory or could it be less?).

2M should be enough to generate some trading liquidity and with not a lot in the market, should keep gthe price quite steady (if nobody is willing to sell at IPO price).

Red Ore could even see a nice rise if nobody wants to sell and if there is demand from new investors.

And with warrants at $ 0.75, you would have to see $ 1.00 minimum to get those exercised, which would mean another 2M shares in the market, meaning 30% of the total fully diluted shares at that time would be tradable.

This really could work out as expected by the company, IF (and that´s a big if) Bottle Creek can deliver good results.

FANTOMAS