Best I can figure this was a one-two punch that has kept PGAS, thus far, down on the mat.
1) 2nd half, March 2020: PPS fell off a cliff along with most other companies, particularly those focused on fossil fuels.
2) Underlying business conditions, primarily the deterioration of crude prices, continue to depress PPS significantly.
2b) As certain underlying business conditions continue, they have negative ramifications for the company. Per the Q1 10-Q, PGAS amended its security purchase agreement for Petrogress Africa Limited (majority owned by Traios, the CEO) and as a result returned the 72% interest previously held by PGAS back to Traios -- I presume, but do not know, this was due to lack of available capital. During this same time frame, presumably due to the conversion of convertible promissory notes, the O/S has increased materially:
3/31/20: 4.4M
5/12/20: 5.2M
6/26/20: 7.1M
7/15/20: 10.1M
7/21/20: 11.7M
I, and I think others here, too, believe that the market has penalized PGAS too harshly for the above. Given the circumstances happening in the world and industry, I understand the need to raise capital through means that can result in dilution and it does appear to be tapering. In addition, we are all aware of the recent expansions in Egypt and Greece; I like both of those in terms of business prospects, but moreso the message it sends about corporate health. That said, I do wonder if some of the necessary capital was funded through the notes and/or new share issuance.
Always appreciate any thoughts or corrections that other posters here may want to share. For the avoidance of any confusion about my conclusions, I remain long on PGAS, currently holding ~60k shares at a little over $0.03, and (absent new, negative information) expect to be comfortably profitable when I cash out here, whenever that may be.
