HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Message: Warrant Selling Pressure

Warrant Selling Pressure

posted on Mar 12, 2008 05:13PM

When people exercise in-the-money warrants they generally will sell some of their shares to pay for the exercise price of their warrants. This will put some pressure on the stock. My guess is we will see some selling pressure between now and April 10th. The 3.25 million warrants at $5 would equal $16.25 mil or about 2.5 million shares at todays value (expect one to sell enough of their current shares to be able to exercise their warrants but no more). This is not that significant if you look at our avg trading volumes of 1 million shares a day (todays volume is not representative of avg volume because of March break), but nonetheless we should expect a bit of selling pressure. My guess is that sellers may wait for a positive news day at which point the market will easily be able to handle the extra selling pressure.

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