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Silver Wheaton Corp. Message Board

  • itsaseculargoldbull itsaseculargoldbull Jun 27, 2008 12:29 PM Flag


    Vote against the offer.
    Do you really believe SLW is looking to do you a favor and take your warrants and give you full value in return? If that were the case, they would buy the warrants back in the open market.

    The warrants dropped 20% on the news and have barely recovered with the common stock this week.
    The deal is undoubtedly good for SLW, but this is a ZERO SUM proposition. One party's (SLW) gain is at the equivalent expense of the other party (you, the warrant holder).

    SLW can borrow against the inevitable warrant conversion from a bank.
    This is a great time to buy all the warrants, first, A and B as they offer full participation in upside with less capital at risk.

    If SLW wants your warrants, let them bid them up in the open market, that is the ONLY way you get fair value.

    Those warrants are a contract between SLW and the holders, and this is a questionable move ethically and speaks to the company's credibility. If 67% vote in favor, even if you vote against, your warrant will be delisted dropping their value to less than their intrinsic value -- a breach of contract by SLW to their holders.
    AEM and PAAS both had warrants expire AT MATURITY in the past year, $15 to $20 in the money. They also happen to have reputations for high eithical standards and treat their shareholders well.

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    • I have crap lot of them and I'm voting against it as there is no benefit for me to exercise them now. But you are wrong about them dropping 20% since they only held some 20% premium 2 years ago when on fund was bidding up the price when they were buying a lot of them for a while and that premium slowly evaporated to nothing. Anyways it's a bad deal for warrant holders and it doesn't make any sense for us. Whatever happens I'm not exercising them in Sep and I don't care about the "bonus" warrants that I would get that are 5 buck out of money. If in Sep. this stock is in the 20s then sure I'll go for it since it there would be an incentive, otherwise forget it.

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