Cash per ShareWhere does everyone get the 70 cents per share in cash from. Including the overallotment they will receive GROSS 86M before the usual fees (6% I assume). At the end of Feb they had 22M in cash which is now probably under 5-10M given their 20M a quarter burn rate. At best the cash is 44 cents per share (86M *.94 + 10M) / 205M shares os. Its still a decent number but much different than 70 cents.
In hindsight noone should be surprised about an offering. Even if production was to be 1M tonnes in F 2011 this would have come in the back end - regardless all the equipment and staff would need to be financed up front. Also their first yr lease payment for the port is 6M - Its higher in the first yr - unsure how this works??
They should have done an offering after the MHSA approval just after Christmas when the stock was over $4 and tied in to "Now that we have permits in place we need to invest in equipment...."
PASTA