So, in a matter of days once the offering closes they will indeed be fully cashed up and can stroke checks to secure their arrangements. This is one hurdle out of the way but to properly speculate on their future valuation we’ll need to include the fresh financing into the share count. The “special warrants” are essentially shares and they are priced at $. I actually like the entry point here at $ Canadian (last close before the recent halt) because the financing announcement pulled it down to the 200 day moving average, right on support. 150 million shares or so were outstanding before this offering which adds approximately 70 million shares within 4 months as the debentures are converted. Let’s call it 75MM so we are at 225MM shares outstanding. The warrants from the offering, once exercised, will add another 70 million shares (and also $112 million of cash). Let’s call those 75MM so we’re looking at 300M fully diluted as we look out to 2019.
Higher interest rates intensified the deflationary pressure on the dollar and reduced investment in . banks. Commercial banks converted Federal Reserve Notes to gold in 1931, reducing its gold reserves and forcing a corresponding reduction in the amount of currency in circulation. This speculative attack created a panic in the . banking system. Fearing imminent devaluation many depositors withdrew funds from . banks.  As bank runs grew, a reverse multiplier effect caused a contraction in the money supply.  Additionally the New York Fed had loaned over $150 million in gold (over 240 tons) to European Central Banks. This transfer contracted the US money supply. The foreign loans became questionable once Britain , Germany, Austria and other European countries went off the gold standard in 1931 and weakened confidence in the dollar.