That's some serious discount. Typically the discount for an overnight transaction is 3-4%, maybe 5%-7% for a challenged company. But 40%? Unbelievable. There is just really no demand for this stock. And I doubt any of those investors are still shareholders as of the end of the day. I'm sure they made a tidy profit (at the expense of existing shareholders, BTW) and still hold the warrants but this was truly ugly financing.
I'm not begrudging management for it. They had no choice (well, except cut spending but that means cutting their own gravy train). But sheesh! This company is in it deep and they're betting on someone being able to catch the hail mary in the end zone.
BTW, anyone notice the begining of the focus shift to the new shiny object? Lynn may be gone but his tactics remain: "start-up operations of existing wells and production facilities on its Claflin property..."
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