Hi Supercruiser, happy to be corrected but my understanding is...

Hi Supercruiser, happy to be corrected but my understanding is that any shares bought up until the deal goes through in May will be subject to the conversion. As to the question of why they are trading at a 35% discount to the offer price, this is anyone's guess but here are a few suggestions:

1. The offer is a while away and buying to close the gap might happen closer to the deal going through in May as people realise the value and have less time to take advantage of it - since the offer price is dependent upon Entree's share price, and with volatility still what it is in the past week or two, buyers might be a bit uncertain that the offer price will stay as high as it is in the short term.

2. PMH is over 50% held by the top 15-20 shareholders which means that there are probably a lot of very small holders out there who are not thrilled at the prospect of having their small parcels transferred to the TSX in May, hence their propensity to sell early to avoid this.

3. Since PMH's price has plumbed the depths of 4c or so in the past 12 months, those with large holdings have probably all topped up to pretty much what they want by now and are sitting waiting, rather than continuing to buy.

Despite these observations, it does still seem like an absolute gift. I also notice Nevada Copper's price has been overtaking that of Entree Gold in the last week or two. I am looking forward to a counter offer and they would be the most likely.