Athabasca Oil Corp T.ATH

Why not a share offering?

[BLACKJACK86]

Issue 400 millions share at 80 cents and use the cash on hand to pay the debt, then  start a share buyback with the 40 millions plus that you save each year.
can you imagine that company debt free......

[Chris007]

LOL...so basically dilute the company by 40 something percent to pay off the debt? That wouldn't be so terrible for new buyers (company basically restarts with a blank slate)...current shareholders would get obliterated...

[Nothingmatters]

Why are people panicking? The company is addressing the refinancing? And didnt we speculate that it would occur sometime in third quarter. But I will start panicking in the fourth quarter for sure...lol

[Chris007]

If it ain't done by Q4...you would probably have to be insane not to panic...

[Nothingmatters]

If it ain't done by then well we wont have Ath as we know it. The good thing would be these management mofos will lose their jobs. These f*** are moochers.

[Nothingmatters]

And lol suncor is down 3 percent as well without any refinancing issue. It is ESG fad, soon people will grow out of it ...

[BLACKJACK86]

That i dont get, whats the difference to the value of the company between owing 450 millions or have that amount translate to share ? why would current shareholder be penalyze? at the end , the company would still have the same value, no?

[Nothingmatters]

Really blackjack...???? You should stop investing dude. Save your money or get help from a professional. This not blackjack...

[BLACKJACK86]

Thank you for the insult, unfortunately you did not respond to my question.....

[Nothingmatters]

5 eating a cake v 10 people eating the same cake. Will 10 people get the same amount of cale as the former 5??

[BLACKJACK86]

You failed, try harder... and i am not kidding 

[Nothingmatters]

Proves my point. You shouldn't be investing

[masfortuna]

Blackjack, he's trying to point out that with more shares you will own less of the company. If the company is worth $10 and there are 10 shares, everbody will have $1.  If the company is worth $10 dollars but there are 100 shares, your shares are now worth .10 cents. The company will be worth an equivalent amount but the shareholders will see their investment diluted.  Do you get it

[Chris007]

Well, your existing stake (assuming you own shares before the issuing of new shares), would shink substantially, obviously... Say you currently own 70,000 shares of ATH. You are currently owning 70,000/531,000,000... You issue another 400,000,000...you would then own 70,000/931,000,000 Your ownership stake the company has obviously shrunk substantially. LIke I said, not so bad if you buy in

[fellowship]

It cannot be done without capital restructuring...and AGM meeting.   Give yourself a pat on the back :)

[Chris007]

It would definitely need to go to a vote...anyways, such a measure would likely be a last resort.

[ZeroIzzue]

Share offering still needs buyers, who would be paying $.80 to buy an additional 400million shares?

[Mindset]

No one wants dilution when you're so undervalued.  Its not that they cant get refinanced, it is whether they will the get the terms they want.  One way or another it will get done.  At current Oil prices the tide is on their side.  Worse case they end up with less debt but at a higher interest rate than current.   The debt will be paid down over time to much

[pantonor]

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