RE:Rights OfferingFor me I am just trying to figure out what to do, and have try to have a reasonable idea of what may happen after we are provided with details of the financing.
Bottom line, not much choice for management, we have to raise capital to stay afloat and move this forward. DeBeers is old news, as is BHP, we are venturing out on our own and dilution is a given.
I would have thought we would have some news from the summers program by now, but I am a rookie when it comes to the financing, timing of news etc. I agree none of the pending news would be material, if it does, and it appears it is being withheld, you may see a shareholder revolt. Even some complaints to the exchange. That is all speculation.
To those in the know about financing, what is your prediction of the shareprice after we hear details, north or south? I think just the announcement of a pending financing has/ or is building into the price now. Why would I even worry about it, because I would like to take advantage of the shareprice now, and the rights with what I own now. Win win, hedge hedge.
With examples if possible, smart to buy more now, or hold cash until the details, shareprices typically rise with this type of financing, or tank?
James, you said you were a finance guy, give us some analysis if you can, other than I am buying more. If your background is, or was finance, give us some examples, both positive and negative.