I'm not trying to disrupt the celebration but with the discussion earlier today about wishing it was a PP rather than debenture, I thought I would throw some numbers around. I can't try every possibility but since if TLD is bad, it is not a pretty picture, I believe most were thinking in terms of it being good so I went there. If TLD is bad, then you are stuck still owing the $11.5mm plus exit fee with the debenture whereas with a PP, it is just shareholders taking a hit like us. If bad enough, I guess the debenture holders take the hit also and get the leftover scraps. I will stiick to good TLD results.

With todays' debenture, we raised CAD$ 15.9 million @ 10% for one year. If the results are good, I will assume that all warrants will be exercised and ORI converts to common shares at, I will use $2.54. That will come to just shy of 7 million shares of dilution to ORI and with the money raised from the warrants, RVX would receive almost CAD$17.5 million although only $15.9 million now and that has to be repaid at some point.

Under the terms of the August/18 PP ($2.50 so almost same price) to raise the same amount of money, we would have had to sell about 6 1/4 million units which had 1/2 warrants each. That would have required issuing over 3 million more shares when exercised @ $3.00 raising an extra more than $9 million. Money raised would have been around $25 million and dilution about 9.5 million shares but only $15.9 million of the cash would be received now and the rest presumably when the company doesn't need it so badly. 

To raise the same amount under the May/19 PO terms would have required a dilution of about 7.9 million shares and raised $31.7 million but only $15.9 million available now. This was at a much higher price than now so fewer units but whole warrants and broker warrants. This price is moot so I just added this to show that even at those prices, the dilution would still have been 7.9 million. 

If I use today's prices with a usual PP discount, we probably wouldn't get more than $2.00/unit now and use the May/19 terms of a whole warrant. This would cause dilution of 15.9 million shares and after the warrants were exercised $36 million raised with only $15.9 million available now. 

What this shows is that the dilution is less with the debenture but you still have the debenture to pay off next year. With PP or PO, you unload that principle onto the PO or PP shareholders but have to absorb higher dilution. Each will have to decide your own preference. Time was an issue for the PO or PP avenues. If I remember correctly, we didn't quite fill the PO so maybe there wasn't a lot available there. We don't know the conditions for paying the debenture off. If it can be used as a bridge loan and with TLD success paid off in a few months, I can see an advantage there. If we stretch out the whole year and its $1.6 million of interest plus still have to find a way to pay off the debenture then, the other methods appear better but they just might not have been available. 

Hopefully we have great TLD and can just pay this off quickly and not worry about it any more. 

There was a lot of discussion about why Sept. 27th and not 30th. My guess would just be that was as far as Third Eye would go as they wanted out before TLD. They wanted to stay within their game plan so collected extra interest and extension fees without incurring extra risk.