Zenyatta applies to extend warrants to 2013

2012-11-22 09:26 ET - News Release

An anonymous director reports

ZENYATTA VENTURES LTD. ANNOUNCES APPLICATION TO EXTEND WARRANTS

Zenyatta Ventures Ltd. has applied to the TSX Venture Exchange to extend the terms of 12,794,000 common share purchase warrants issued or reserved for issuance prior to the company's initial public offering in December, 2010. Each warrant entitles the holder to acquire one share for $1 expiring on Dec. 23, 2012. Pursuant to the proposed amendment, the warrants will be extended for a period of six months and will expire on June 23, 2013. The extension was requested based on an initial delay in starting the company's exploration program after the IPO and is subject to regulatory approval.

We seek Safe Harbor.

Normally, I am not a big fan of extending the warrants (unless I own them lol) as this extends the overhang on a stock but in this case, it works out for us. With the warrants only a month away, there would of been a squeeze by brokers to keep the price under $1 to force the company into a PP. Now, that pressure is gone and with purity results and resumption of drilling, we should be in a position to have those warrants cashed in and get $11M with minimal dilution.

Chart looks great also which is very different from all other graphite company:

http://stockcharts.com/freecharts/candleglance.html?ZEN.V,NGC.V,FMS.V,FDR.V,EGZ.
TO,LLG.V,SGH.V,SRK.V,LMR.V,GPH.V|D|A12,26,9

G.