Replies to post #3357 on Banro Corp. fka BAA

[liggity]

Yea bro. IMO the stock market is a scam...

I mean, sure good companies prices go up over time as they grow, but with some big dips in there for the smart money to buy.

There will be no logical explanation, other than the fact that money runs this world, and the market is rigged by those with tons of it.

Your right, nothing has changed to make this company take such a huge hit to it's market cap. They did dilute and obtain 40mil in financing for shares, however who would give up 40,000,000 for shares, if the shares would soon become worthless??

From the 2/28 SEC filings:

The Company also intends to establish a six month put option arrangement on 50% of its expected production to protect the Company’s cash flows during the Namoya ramp up period.

The cumulative benefits of the efficiencies introduced into operations from the second quarter of 2013 and the achievement of commercial production at Namoya by the end of the second quarter of 2014 are expected to result in both the Twangiza Mine and the Namoya Mine being able to achieve their planned 9,000 to 10,000 ounces per month gold production forecasts from the third quarter of 2014 onwards, transforming Banro into a plus 225,000 ounce per year producer with cash costs in the range of US$700 to US$800 per ounce and all-in sustaining costs of US$850 to US$950 per ounce anticipated for 2014.

The convertible preferred shares issued under the Private Placement, which were issued through two Banro subsidiaries, will pay an 8% cumulative preferential cash dividend, payable quarterly, and mature on June 1, 2017. At the option of the holders and at any time before the maturity date, the holders will be entitled to exchange their preferred shares into 55,525,000 common shares of Banro at a strike price of US$0.7204 per common share.

Can someone explain the 6 month put option?? They anticipated this drop in price I suppose?? 6 month puts us into August right? Having a hard time wrapping my head around exactly what that 6 month put option is doing for them...?