churning, page-30

I am now a share 'holder' in JPR and I don't want the oppies converted. A 100 million share issue at 7 or even 6 cents is better than converting 300 million oppies for 8 cents into heads.

The question is, assuming they have to issue 100 million shares at 6 cents for two more wells, then to obtain the other $18 million and end up with less than the 300 million extra shares, they have to get the share price to at least 9cents. Realistically a 200 million share issue to raise $18 million (with cost and a discount) would need a share price of ~10cents. With two more wells the SP should be at least double or most probably triple the current price, say 13 cents. So by letting the oppies expire they could issue at 13cnets to raise the extra $18mil. This would reduce the number of shares on issue by 60 million compared to if all the oppies were converted. This is of course one specific scenario and there is not really much in it when you look at it like this. Given management hold oppies then they most probably want them converted, but for most heads only holders, I don't think it matters much one way or the other, that is if you think JPR need the $24 mil. I don't think they need that amount and do not want the oppies converted. I can't see them growing the extra money as fast as they can grow money on block31 so don't think they should dilute to try and do so.