Q: Hi Peter…Any red flags with GOT’s latest private placement? Are the “Broker Warrants” a deal sweetener? I presume the Broker will want to peddle the warrants to the major shareholders at some point in the future…maybe when the warrants are “in-the-money”. Any thoughts you have would be appreciated.
Regards,
Jim
Regards,
Jim
5i Research Answer:
The warrants are a sweetener, certainly, but such deals are fairly common and the 6% commission is not out of line with peer deals. However, the 6% commission and 6% in warrants is higher than average (but not the highest we have seen). Condsidering the stock's big gains we can live with this for a flow through deal.