RE: RE: 5mill payment...LGO and OILHi jwall.
I have a feeling LGO had commitments at the time, from at least one and possibly more than one of the big participants from June PP, from either Fraser Mackenzie, Maquarie, or Clarus to do another placement in the fall for at least the $5 Million. I think in June July Mark truly believed that funding was in the bag for November. When it came time to do the placement in and around August they said forget it, the market is in freefall and we wont do an equity deal in the current market. Remember that the 23MM share PP closed only in late June. Remember the TSX-V was in freefall already in July. By late August nobody wanted to do a PP because everything on the venture was going down fast. Thats the absolutely worst time for a PP if you are the investor. They probably wanted ugly terms on a debt deal or wouldn't go that route at all and thats what transpired into looking for money in the middle of the worst credit crisis in over 70 years. Its just a guess on my part...... But by late August early September an equity deal wasn't even an option. Nobody would have taken shares unless it severely undercut the market price or had full warrants etc etc.... Thats how I feel things panned out.
If you knew that Mark had the rug pulled on a PP financing in August, would you feel the same way that they fumbled the ball here? All this is total speculation on my part...... but we just don't have near enough facts to pass full judgement on management at this time. We would all be crazy thinking that a conversation about the November milestone payment didn't cross the table during discussions on the June PP with those three investment houses..... I think they got hit by terrible timing in the form of a global financial collapse. If one or more of those houses saw prices going in the tank they would have been crazy to do a PP at 30-40 cents...... Should have done it earlier I guess. Should have financined it with a $20MM deal last spring instead of $11MM..... Thats why I say hindsight. I'm giving Mark the benefit of the doubt here in that I think he had a deal lined up and it got squashed. I wouldn't blame an investment house for backing out. The TSXV was in a definite downtrend in July. At that point he had very few options.
Thats why I say hindsight....... it wasn't that easy to just get it done with the timeframe of events that occured last summer IMO.....
lurk