At first blush that's what I thought as well. Again per IR dept they had to start the clock w/respect to ave share price over xx numbers of days prior to offering. Today was the first day hence the announcement. I didn't get good answer on this other than it's a TSX regulation. I can try to find out more. Again I was given the impression the PR had to be done in this manner. If not I'll be pissed as well.
Secondly, it does appear that BIOX is overbudget. Just a few weeks ago everything was fine. This part of the release was not handled well I agree. However, do you delay full production due to cost overruns or do you proceed ASAP knowing that while higher gold prices are likely IT, LT anything can happend ST. Again some of the cash is being used for the power plant which wasn't anticipated a year ago, but will be an excellent addition to removing future downside/power issues. They again could have handled this better by stating this up front when they first decided to build it.
Right now I'm willing to give GSS the benefit of the doubt, but obviously if I find out that it was not required to issue the PR w/out the shares involved I'll be rather pissed. Either the IR dept is grossly misinformed or they just plain lied.
GSS needs to do a much better job of managing expectations. They certainly have done a very poor job in the past w/respect to secondaries. Given how close they are to expanding production/reducing costs and putting most of their power issues behind them I'm willing to cut them some slack on this offering, but we'll see the #'s of shares and why this was done in this manner. Value stocks are priced this way for a reason. If they did everything right they wouldn't be a good value most likely.
