GREY:PGDIF - Post by User
Comment by
mill44on Jul 14, 2018 11:55pm
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Post# 28317439
RE:RE:RE:RE:Pole time...and I don’t mean the stripper version...well
RE:RE:RE:RE:Pole time...and I don’t mean the stripper version...wellA rights offering will lead to more rights offering. If they considered going alone, they will issue more rights. If not, there is no reason. From now on there will be decent risks associated with rights. It would be dumb not to consider that. The Friedlands will have no control where the rights end up. The rights will also bring a lot of supply of discounted shares. The more money is spent on the project, the harder it will be to find someone that would pay the right price for it. If there is real interest for the project, it would be smarter to use that interest for a PP at a premium. They would keep control of the process, increase the value of the project, keep going and give themselves more options for the future.
The market is waiting for their next step to read their intensions. A rights offering would cement the idea that they want to do this alone. It would not just mean dilution but most market participants would abandon PGD alltogether.