RE:RE:My guess is we hit $1 tomorrow Your points are valid, watch22. They are selling about 20 million shares. I think the company and National Bank have a pretty good idea this will be scooped up pretty quickly, however. I don't think these parties would've entered this deal if they thought it wouldn't.
But the positive, here, far outweighs the negative.
1) all high interest debt will be consolidated at a much more advantageous rate (lower by 2.37%) and save the company about 3.5 million/year on a yearly basis.
2) a credit agreement of 38.5 million will follow on the heels of the convertible, also at a great interest rate, allowing the company to continue its growth strategy.
3) as in the previous raises, GDNP is simultaneously announcing a major multi-year, 13 million/year contract with a large US-based company. Considering next quarter's revenues which should come in around 20 millions, an additional 2-3 million per quarter (we are told GDNP already has some business with this company) is a major deal.
4) the dilution implied by the convertible is less than 10% of the market cap and is compensated by this new contract.
I continue to like the direction of the business here. Grow the revenues while managing the debt.
Cheers,
Hen