gda have announced a 1 for 1 share and option issue at 1c... proving once again, how wrong watso was about this stock. for a some time watso had been calling an issue at 2c, but when the 3c (750 shares) support level broke, yesterday, watso did suggest that there would be a 2 for one issue (with a free option) at 1c. the free options to be issued will be exercisable by may in 2009.
as a further inducement to loyal shareholders who will love this opportunity to average down, the options that are to be issue, wil entitle holders, who exercisetheir option, wil then be entitled to another option exercisable at 1c by 2011 - thus giving holders another chance to average down. a bit like free gambling chips at the casino.
looking at the prospectus, it seems that part of the proceeds will be used to repay short term debt. watso has previously suggested, that the company is supported by way of loans, so that assomes, tha the company is virtually out of funds, which watso suggested previously.
after allowing for the repayment of the loan, and the costs of the issue, then that does not leave much . more funds will be required by the end of march.
watso is certain that kinghadi will love the chance to average down, as he is probably down about 95% on his holding. kinghadi sure did love those warm fuzzy wuzzy posts, and put $250,000 into this stock. funny, and it seems that certain posters take offence about non stockholders posting - yet, they provide a balance against the blatant ramps
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