RE:One more question for the boardGood question, I'd also like to know how much the preferred shares/potential future dilution is weighing on share price.
If you recall back in September PIPE got 67 million in exchange for 70,000 preferred shares. Those preferreds are convertible to shares. Which if converted would add ~82 million shares.
Now that money has been used wisely to grow production but, fully diluted, pipe will have 270 million shares outstanding. It is likely that this potential increase in shares is priced in to curent value and we have nothing to worry about but maybe it's not. Perhaps someone can expand and explain how this impacts common shareholders.
The preferred shares right now get a dividend of 6.5% accrued quarterly (payable in cash or shares) which could lead to additional dilution. The other side of the coin is that the 4.3 million a year in dividends, if paid in cash, is getting diverted from growing production or paying down debt.
montrus wrote: It's nice that PIPE is up 3-fold since early January, but still feel we are under valued and could be at least in the $2.50 range in a 'normal' market. So my question: when will investors be rewarded?