Sarissa Resources Inc (SRSR)

[jpp09]

The numbers on the HKHE option, for whatever reason this has never been brought up here, but I personally think it is important and may partially explain the sell off.

from PR:
"Under the terms of the Option, when exercised between CDN$5,500,000 and CDN$10,000,000 will have been raised by HKHE and Sarissa will transfer the ownership of its wholly-owned subsidiary, Nio-Star Corp., to HKHE in return for approximately 65% to 75% of the capital of HKHE, depending on the amounts raised."

Lets assume $5.5 million = 25% of SRSR (ignoring shinning tree here). We currently have 820 million shares which accounts for what would be 75% of new company. In order to get the new share count at current structure would be 820,000,000/.75 (75%) = 1,093,333,333 shares total, to get new shares, take 1,093,333,333 - 820,000,000 = 273,333,333 new shares. To get price per share take 5,5000,000/273,333,333 = $ .02012

The numbers again at 10million for 35% of SRSR
441,538,461 new shares
$ .02264 per share

Based on trading small/mid caps, if I just bought something at say $5 (SRSR @.05) or $6 (SRSR @.06) and then the company effective sells new shares at 1/3 the price I just bought them for I would immediately sell as more then likely the price will dip to meet that recent buy in level. In those terms SRSR is holding up pretty well considering.

HKHE is getting a very good deal here, I personally would feel much better if $10million = 25% of the company raising their buy in price up to .036 (or really anywhere above .03). It's a little frustrating that Scott has continuously put the value of the company at .02 for 3 years now, no matter where the current PPS has been.