RE: insider information???? cash call for DEC???Reccos...I'm being positive here for the rest of the Patsies.
There are situations where a company needs to raise finance and uses a rights issue to achieve this. Pat raised the cash it needs with a rights issue which was fully subscribed in the case of Pat. Plus, the debt to Don Ross was converted to equity shares. Dilution is always a problem. However, the diluted shares with the rights offering and the additional debt equity conversion went to URSA and Don Ross who would be considered safe hands. Will this dilution be looked at as a negative by the market? Time will tell. Cash calls can be perceived by the market as a sign of weakness in a company's economic position, especially where the cash is used to pay off debt rather than to finance acquisitions. But then you have to ask yourself if the Pat rights offering was to payoff debt or to increase their holding in the IG project. Surely it was to increase their holding in the IG property and Pats share of future cash earnings. This is more of an aquisition adding to your core business.
The 1 million options given to insiders...that'll be a little tougher to sell...and even more so piled on top of the major dilution of Pat stock for the rights offering and debt equity transfer. It might have been wiser to reward the insiders with their options after the road show? Just a thought.
RS/CC...I can feel shareholder value kicking in.