Banro Corp. fka BAA

[baystock1]

Nice summary thanks. Banro is now no longer a distressed situation. The dilution is much more than I anticipated. IMO 50% of the upside has been removed with this refinancing but concomitantly the extreme downside risk from an unsustainable debt situation with its BK potential has been removed.

Overall I like this deal. Banro is now transitioning from a spec to an investment, that is if you believe that the gold price has substantial upside like I do. I like the fact that the top 3 institutions will now own 80% of the company.

In hindsight the thing holding down the price of Banro was the uncertainty surrounding their debts and less so the fact that their mines are in the DRC. Now that the debt situation has been resolved, Banro should start attracting a new class of investors who previously wouldn't touch this situation due to the BK risks. Within a year or less when gold is a few hundred dollars higher and it is clear that they are on track to actually be able to pay down their debt we should see Banro catching up to its peers in valuation.