Replies to post #67843 on Koil Energy Solutions Inc. (KLNG)

[xZx]

teomax, there's an easy answer: because when DR ponies up 40M for a small company they get a very sweet deal. and management accepted the terms (a pps very close to the market value at the time the deal was struck) because they know we all stand to make out like bandits anyway. jmho.

[nsomniyak]

Your point has merit if you just think tactically. However, thinking strategically, it is clearly worthwhile to have DR and friends on your side.

Think about it--having a stock price that has run up from an at-market financing level is far from the worst "problem" you could have! :)

[uncleremus]

I'm sure they considered that option...maybe funds weren't available to them given the existing mezzanine loan. Of course you can ask the question why didn't they wait 2 more months to sign the contract purchase agreement with flotech given the rising stock price? Maybe the stock price stops in it's tracks who knows? I'll give management the benefit of the doubt.