As I expected financing came in some form with a 25 % dilution for now.
If all the warrants and debentures are exercised then it would be roughly 50% dilution.
But I really don't think all that dilution matters right now. After all, it will be consolidated 14.25 :1
What is more important now is to have money available to finish the plant upgrade which there will be .
Is that holy grail solution....I don't know. Maybe it will work.....maybe it won't work. No one knows until we see the results.
So what has happened since yesterday's Reinstatement.
I think the retailers are getting out in droves.
Over 25 million volume yesterday.....today so far 9 million.
Not much selling coming below 7 cents.
One thing is puzzling me is why would the sophisticated agree to .083 cents and allow .07 cents for the retailers SPP. If anything it would be the other way around. Or is it a ploy to get most of the retailers onto selling to arbitrage. I think the wholesale money wants the retailer out of this game. One thing I am certain of is before any meaningful share price appreciation the big money always makes sure the little ones are out. They never provide free ride up, only to those who take the pain pill.
Again management should have known the SPP would create selling pressure from the retailers.
I suspect they might close the SPP earlier.
My guess is the Sprott deal was blocked by the Large shareholders, that would have given too much control to Sprott. That deal was all gain and little risk to Sprott. Somehow Sprott will gain some exposure through the Golden Harp merger deal and may have some already via Cormack Securities (Co-Lead Managers for the CR). Many don't know Cormack Securities used to be Sprott Securities before Eric Sprott sold to its employees and formed the now Sprott Resources in collaboration with Rick Rule.
I have read a lot of theories since yesterday on HC. Some of those people are highly professional gold stock investors. I don't know their reason for throwing dire opinions but what I do know is they are not in the business of saving or making money for other people. They are for themselves and themselves only.
In fact, everyone is for themselves.
85 million market cap today......I'll take my chances.
BDR Price at posting:
6.8¢ Sentiment: None Disclosure: Held
