Mike. As I initially said, the real benefits of this CR is for the large holders and the brand new ones. That 1:7 for those with just a few hundred thousand really won't pay too many more bills.
Some of those selling today, who WILL lose their entitlement to that number sold, would only be doing it to get some cash to take up the more attractive new ones with their 2 lots of free options.
Some holders have many more than a million shares mightn't be able to find the cash to buy more UNITH shares. But if they want to take up the entitlement they are downsizing from their million plus and picking up 1 for every 7 that they buy from the balance..
Say you own 2 million shares now, then your entitlement will be around 285,000 shares and they would cost over $4,000. They sell 275,000 @ .015 and get that $4,000 and end up with 1,725,000 from their original holding.
They are then entitled to around 245,000 shares costing around $3,500, plus 245,000 options.
They end up with 1,725,000 shares + 245,000 from their 1:7 entitlement = 1,970,000 shares, plus + 245,000 options.
They are effectively swapping 30,000 shares for 245,000 options +change.
Some might just want to sell because the SP is dropping and get out before they drop any further and say goodbye.
Obviously anyone who just sells because the SP is dropping loses those shares and any entitlement, but, as you say, some might buy back IF the SP drops below .015 before 17 Feb.
Apples for apples.
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I
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