Antrim Energy Inc. ATGYF

Equity or Debt financing

[xyellowknifer]

Of course, we would all prefer a optimal mix of debt and equity at Antrim. I too wish that we didn't have to dilute our future profits however, we have to realize that this affects management's future earnings as well. Without having all the facts, we need to trust management that they have analyzed the situation correctly and are acting in our best interest. For example, sometimes debt can impose some severe limitations on the company's operations.If we borrowed $50 million, we would have to start making payments (debt servicing obligations), we might have to tie up our assets through pledges and guarantees. Until we have a cash flow from Causeway it will be difficult to borrow. Issuing equity is also a hedge on unforseen problems - debt has to be repaid equity doesn't. Possibly a near term take over of Antrim (or other exit strategy)would be easier without debt. Good debate but IMHO without a cash flow to service debt we probably have little choice in how we finance our growth in 2007 Future looks good!