A lot of posts today, tried to read most but too many. thought I amy comment on the PP issue.
I have noted a major shift in arguments relating to a PP since the AGM was held. Prior to the AGM everyone was pretty clear that a PP was not needed as we had lots of cash in the bank. In fact many were worried that if Rosseau got total control of the BOD he would purposefully dilute the shares for his benefit. (I believe we have 30 -35 Million or there about’s in the bank.) Now we are hearing that Bay ST has been alerted by a major shareholder (Who, Pray Tell?? ) that he feels the burn rate was too high and the cash too low in present market conditions and as such the market expects a PP and is pricing this into current share price. So we should go ahead with the PP.
Well which is it, I had thought and still feel that in the present market conditions any junior with NORONT's funds would be in high spirits, dancing in the streets so to speak . With this amount of Money in the bank a company can ride out this market downtrend and wait for better conditions. I guess the other option is to get a PP, drill the heck out of it and attempt to prove it up so we can sell in this terrible market. As someone pointed out various shareholders do have different timelines and I do understand this.
Regardless to me if another PP is inevitable, occurs in short notice, and does not allow the retail investor to be part of it, it is just another case of the retail investor having to assume the position, as Rosedale had previously pointed out does occur on occasion, a so called, transfer of wealth. We need to come to terms with what a PP at this time would mean. What message would this send? If it is needed, fine let’s do it, but if not, we are just being screwed. Any accountants out there or persons that have knowledge in this area care to comment.
By the Way, I am aware that we came to a comprimise with Rosseau and that the BOD includes persons choosen by previous NOT Board members. I agree this is very positive. I realise we should allow this board an opportunity to perform and am looking forward to viewing thier 12 and 24 month operation budget, I am not looking forward to dillution of this stock.
Relic
