I know many people have huge fears of dilution, but we all knew they needed cash, so no surprise there. If they borrowed the cash, it would have been secured, and might have crimped future plans and limited future operational and JV strategies. If they borrowed the cash, it would need to be paid back. By selling stock, they are eliminating the debt, not exchanging debt for debt, and adding more debt. My only regret is management failed to do this at $1/share!!!! They should get their asses kicked for that mistake. Which may be why we are seeing a second director head for the exit. Gerry replaced the first director that exited about 5 months ago.
But think about it, this is about a 40% stock dilution, to eliminate the debt, and add cash needed to completed the well, that will lead to cash flow before year end by completing the well and the connection to the pipeline. Nothing else has changed, but once the well is flowing Guggenheim becomes a buddy with lots of cash!!!!!! And Japan is now hunting for NG deals before China buys them all!!!!
So just reduce the recent stock high price for an early rally target (and you get a little over the 50 cent warrant target), for an easy 3 bagger from here by year end?
Also keep in mind accredited investors will also be looking to sell the .15 shares for at least .50/share!
Ambition with out knowledge is like ship in dry dock. Going nowhere fast!
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