QuestionThe following is from NFG's press release dated August 12, 2021 in the "About NFG" section near the bottom of the document:
".......To date the Company has completed approximately 37.5% of its planned 200,000m drill program at Queensway North. Nine rigs are in operation at Queensway with the drill count planned to increase to ten rigs by Q3 2021. With a current working capital balance of approximately $68 million, New Found is well funded for this program."
If NFG is "well-funded for this program", why the need for the equity raise 7 days later on August 17.......?
If NFG has plenty of cash to fund their program until the end of 2021, I think the smart way to go would be for NFG to only raise equity if they think their shares are overvalued (or at least fully valued), Otherwise, I don't think it's a shareholder-freindly thing to do - why raise equity now when it's not needed unless you don't expect the share price to recover to the $12 - $13 range within the next three months or so.........?