Hello Brutus,

Your post says "Also don't think there is anything that stops the company from extending the expiration date of the warrants, if they so wish. Correct me if I'm off base here."

My understanding is that the company's BoD can decide if they want to extend the wrts by 6 months, or any other duration (strike price in this case @ $1.00, and current SP = $0.68), as long as there is a good chance for their application to be considered as reasonable and accepable by the TSX. This watchdog's job is to make sure that nothing "fishy" is going on before giving its approval. In this case, the chance to get approval is good since the wrts are not yet "in the money". But the chance for the SP to appreciate by 30% (to over $1.00) is within reach over a period like 6 months, given the current state and future prospect of the company. It would also sound like ZEN is forcing the issue and betting on the willingness of the market to drive the SP over the $1.00 level.

As I see it, there is no negative consequences for this extension...over $10M for a bit of dilution vs no money when the wrts become expired in December 2012. It's a smart move, and as indicated in previous posts this would avoid a PP at lower prices which could be easily manipulated by "bad" bankers.

On the other hand, if the BoD decided to lower the strike price to below the SP (e.g. $0.01, taking an extreme example to illustrate the point) then my guess is that, unless there are compelling reasons for it, the TSX would have serious problem with the application...and we would also hear loud screams from shareholders.

Anyway, TSX still got to give approval to the current application as stated in the NR.

goldhunter