average price of warrants which is $1.1

来源: 2009-09-19 05:44:52 [博客] [旧帖] [给我悄悄话] 本文已被阅读:
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average price of warrants which is 1,10 $ ? This means they expect the price to be much higher than 1,10 $

REGARDING T SQUARED INVESTMENTS NEW SHARES

coolavrio wrote: "The dilution is...so negligible"

Are **you** serious?

Previously, CKGT had 833,333 PREFERRED shares outstanding. Now, they will have 1.25 million PREFERRED shares outstanding.

That's a 50% dilution in the PREFERRED shares alone.

In case you didn't realize, you don't have preferred shares. You just got pushed significantly further down the queue.

However, T Squared Investments and CKGT want you to feel better, so the warrants are for common shares. Previously, CKGT had 17.739 million common shares outstanding. If the warrants for 1.1 million new common shares are exercised, the dilution will be 6.2%.

Of course, the question for you is...if the common shares are so good, why does T Squared Investments continue accumulating PREFERRED shares?

3) You emphasize on the dilution on the preferred shares.That is smart trick but the real dilution comes from the comparison with the total shares. So since the preferred shares will be 1,25 million while the total shares are 17,7 million then the real dilution is 4%. Apparently it is so negligible and apparently you do not have any idea about the extent of the dilution in many other companies.

Besides

1) Why dont you make any reference at the average price of warrants which is 1,10 $ ? This means they expect the price to be much higher than 1,10 $. Common sense.

2) Why dont you make any reference at the fact that the arrival of a fund strengthens the reliability and the credibility of the management of CKGT and of the company itself ? As you know the OTCBB companies suffer from lack of credibility this is why there are not any funds in them.
The individual investors of CKGT can trust CKGT now and they do feel much safer after this financing.