Good news. Of course, it's good to know that there are no leaks in the company, it's institutional buyers or the TSX. That way no one gets any advantage by buying early! LOL!
What a joke! Where are the regulators????
Oh well. I am glad that the debt issue is behind us. Let's focus on mining, profits and ODN now!
I tip my hat to those who predicted for a NR before the AGM. This financing news is very good since all doubts of the debt being repayed are now crushed. PTQ won't have to pay 18% interest on the outstanding debt. The $30M can also earn 4 months of interest before it is applied to elimate the debt given our grace period into March. However, management may decide to close the debt before November 30 just to make the balance sheet look clean for FYQ2 earnings. Either way, PTQ can now promote itself as a debt free 100koz+ producer. Dilution of 30M shares is not that big and now cashflow from Molejon can be reinvested for heap leach and exploration. It seems PTQ will now have sufficient working capital going forward.
The pricing @ $1.00 is very nice considering that it could've been priced lower several months ago with more dilution. Management did well for shareholders by being patient and waiting for the stock price to rise. I also like the pricing of the $1.45 warrants too.
Am I the only one who's on the fence about this? Sure, being debt-free is great, but did we really need to be debt-free immediately at a cost of diluting the the fully diluted O/S to the tune of 61.5M shares? The DB refi took care of any pressing debt concerns.
30M shares + 30M warrants + 5% finder's options (1.5M) = 61.5M shares. That brings our fully diluted O/S to 230M shares. Keep in mind, they could have raised half what they did through this placement ($15M) by forcing a call on the warrants priced at $0.65 after we trade CAD$1+ on the TSX for 30 days.
Volume is kind of weak in Frankfurt this morning. It's going to be interesting to see how Canada reacts to the news. The TSX is what drives this stock.
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