NOT and Flo thru financing

HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

Reply New Message

Prev Message Back To Forum Threaded View Next Message

khareema

Rank: President [?]

Points: 21476 [?]

Votes: 372 Score: 3.6 [?]

Your Vote:

Please Log In to Vote

Did you know? You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.)

NOT and Flo thru financing

posted on May 12, 2010 10:29AM

I have been studying this flo thru financing and the effect it has on our share price going forward.

There are several positives, and only one negative that comes to mind. The negative is that it was only 93% subscribed, where many recent ones have been over subscribed, yet considering the present SP, it really is amazing that it was that high.

On the positive side, the brokerage fees are the lowest I have seen recently. It is not uncommon to see a 7-8% fee charged as well as options, and sometimes as high as 10%. But this one was done at 5%, indicating there was extreme interest from the brokers in participating.

The PP is flo thru, which means that an investor in the highest tax bracket is actually looking at an actual cost of approximately 1.23 when considering the tax implications. However when using this actual cost, it must be understood that if you sold at that price you are negating gains from previous years. There is no way that anyone would seriously be comfortable buying in here knowing that you will likely sell at the present share price. Rather the buyer is considering that they will have a serious gain from here that will be multiplied by the fact that it is flo thru. And to raise 13.9 mill, there must be a good number of investors out there that think so.

We now know that there is sufficient funds in the bank to do what they intend for the next year, and hopefully we now have no barriers in front of us. One good hit is all we need. Just one, and it doesn't even have to be NOT that finds it.