Hi Lawnbowler!

I think the conversion is acceptable given that they closed the transaction at prices well above the market, and at the same terms as the previous financing closed, so no preferential treatment was handed out. In exchange for the additional dilution that resulted we now have a cleaner balance sheet and will not have to drain much of the operating cash flow that is generated to pay out interest obligations. So in that sense it is positive. I doubt it makes a difference either way in terms of a potential takeover bid, since we would likely be talking about hundreds of millions of dollars in such a move, while the outstanding debt would have amounted to a small fraction of the total cost.

I am simply trying to stay focused on the big picture for ECU instead of the current share price. Are we closer to achieving meaningful and profitable production? Can the company sustain its efforts to continue exploration and prove up a larger resource? Do we remain fully leveraged to the metals and thus in position to see much higher share prices if and when the secular bull market kicks into a higher gear? I think the answer to all of the above is 'yes' and therefore I am willing to put up with all of the nonsense in the daily trading, and the rapidly expanding share structure. The situation is not ideal, but its not a disaster either.

cheers!

mike

Voluntary disclosure: ECU is a paid advertiser on my website