LGX Oil + Gas Inc ROAOF

I don't know why...

[Franjo11]

The company clearly has prospects to be profitable when oil is $100, which it will be again within 2 years.  The trick is that they survive this deflationary period.  So the board rejects the previous financing arrangement because it is overly dilutive to shareholders.  The share price was around $2.50 or so.  Now they get a deal that clearly is worse for the shareholders than previously, judging by the SP reaction.  This does not resolve the financing situation; it only gives them a lifeline for a month or so, during which they have to look for a buyer.  If there is no buyer, company goes bankrupt, assets get sold and debtors get paid.  Common shareholders get nothing.  This is becoming a more and more likely scenario even though it makes no sense because the company has valuable assets that would be profitable in a normal economic environment.
So someone enlighten me... knowing that they will need the money, perhaps when SP was around $5 or even $3, why not do an equity offering that's slightly dilutive to shareholders in order to lessen the debt burden of the company?  Sure, there would be dilution, but the company would survive the tough times and still have good prospects of making money when oil is back to $100+.  Also, not hedging at all against the oil price going down when you have so much debt shows management incompetence.  As things stand right now, the common shareholders are likely to get wiped out..