RE:RE:RE:FinancingThales42 wrote
Question: What do you get when you combine lack of accountability and greed?
Answer: The Latest AOT financing
April 10 is the closing date and Aot should cancel the deal as it sucks.
The average SP in the last twenty days is $1.10, so a 22% price discount plus 15% additional allotement you only give to your friends and lovers. I am openly questioning the Ulterior Motives of Aot for this disastrous deal as clearly there were a number of better available options.
Here is one of them . Gold was down in the last eight months and Aot needed financing on a short notice. What do you do in these circumstances?
Instead of signing a deal that appeared to be entered under duress, Aot should have considered securing a short term loan with higher interest rates, then wait for the gold recovery to negotiate much better financing and use the new financing to repay the bridge/ emergency loan. This is/was elementary and the fact that Aot ignored or wilinghly disregarded the obvious choice cast a long shadow on the integrity of Aot management. BMO and Reymond James of the world are known greedy sharks, but why Aot let themselves being played as a fiddle by the banksters?
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They should have done this and considered that and looked into that possibility. How do you know they didnt consider all these things and more?
They should have considered a short term loan and waited for a gold price recovery.
Maybe nobody wanted to give them a short term loan. What if there is no gold price recovery?
So they sold shares at 22% under the average shareprice. Probably because thats the best deal they could get to raise $55 million in a private placement into a junior miner with no current production or profits.
It sure is easy to sit back and be an arm chair quarter back and point out all the mistakes they are making.
When you are actually doing what they are doing and have to live in the real world its not always quite so easy and investors are not always falling into your lap as they have all kinds of options on where to put there money and Ascot currently needs them more than they need Ascot.
Many have tried to take a junior miner into production and most never get as far as this company has in a relatively short time. Time will tell how it all plays out but at least they have managed to have investors give them over $150 million in financing to get the mine into production.
They must be doing something right.