So what are people's thoughts on the acceleration clause?? So say the warrants become in the money and for a period of 15 consecutive trading days, the company turns up the expiry date on the warrants after a 30 day notice......why?
Is it to simply get the placees to belly up for the warrants and in return put money into the company coffers? I would think that if the warrants do become in the money wouldn't they naturally be exercised as a matter of course?
I guess this way there's some screws to turn and set the date for incoming cash thru exercise. Tought thing is knowing that most placees usually sell their shares to finance the exercise of the attached warrants once they are in the money. So that will put pressure on the market to absorb the supply from this source. There is 6 million warrants possible at .35 and .50 in yrs 1 and 2
Premium Exploration Announces Private Placement
Sep. 11, 2009 (TheNewswire.ca) --
VANCOUVER, BRITISH COLUMBIA (September 11, 2009) - Premium Exploration (OOTC:PMMEF) Inc. (TSX-V:PEM)("Premium") is pleased to announce its intention to raise up to CDN$3,000,000 through a non-brokered private placement of 12,000,000 Units at $0.25 per Unit. Each Unit will consist of one Common Share and one-half of a non-transferable Warrant. Each whole Warrant will be exercisable for a period of two years at a price of $0.35 in the first year and $0.50 in the second year.
The Warrants are subject to an acceleration clause which comes into effect once the shares trade above a weighted average price of 100% or more from the exercise price, for any fifteen consecutive trading-day period subsequent to four months from the Closing Date. In this event, Premium may accelerate the expiry of the Warrants upon providing 30 days' notice to the Warrantholders.
The proceeds from the private placement will be used to:
-Further exploration, including drilling, on Friday-Petsite's (NI 43-101) 531,890 oz inferred gold resource (OTCBB:GORO) ;
The Phase I Drill Program successfully demonstrated continuity of this gold mineralized zone. The Phase II Drill Program is designed to delineate the gold mineralized zone to the north and south of the existing resource. This program will further define the target which will have significant implications for the size potential of the mineralized envelope.
-Advance ongoing production permitting on the Buffalo Gulch project;
-Review exploration on the Chrome Mountain property in Montana in anticipation of a comprehensive exploration program in 2010;
-Conduct general exploration on the San Pedro Analco project in Mexico; and
-Provide general working capital.
-The funds raised will include up to 7% finder's fees in cash or shares. The private placement is subject to approval from the TSX Venture Exchange.
