Very well put Stewie. And let's not forget the Warrants that went with the Private Placement shares last fall. As I understand it, a warrant is very much like an option, giving the buyer of the original share (under the PP) the option, without obligation, to buy another share at a specified price within a set time limit. In the case of the last PP, each share purchased came with a warrant for one share, at a strike price of $2.10, with an expiry date of October 2012.

Whenever I want to reassure myself that Lori has skin in the game, I remember that she has hundreds of thousands of those warrants. If the market price doesn't recover above the strike price she (and the other PP participants) will pay a premium to exercise their warrants, or lose them forever.

Either way, be it options or warrants, the good thing is that all funds paid to exercise them goes into the company treasury (to fund more site work). It's not like buying shares on the open market, where the money only goes to the last owner of the stock. This helps to mitigate the dilution effect that both warrant and options have on the rest of us.

IMHO - please correct me if I'm wrong on this.

NoWorries