Why do the deal?If things are so bad, and who knows if this has already been discussed, but why wouldn't OPTI look for acquirers rather than diluting the heck out of the stock?
What I find most interesting in Andrew Willis' story on OPTI yesterday afternoon is this:
"OPTI shares last traded on Tuesday at $2.60 each. The underwritersaren’t commenting, but chatter among fund managers is the new equitywill need to be priced at $1.80 a share to find sufficient investorsupport. That's a 31 per cent discount. To do a deal with this large adiscount, fund managers say OPTI might need to get approval fromregulators."
It's not as if they don't have a product or a valuable asset, why sell the farm... something is just not right...and the length of this HALT is ridiculous. Why wouldn't they have let the stock run up in April and MAy do the financing then at 3.50-4.50 a share, creating a solid base and not diluting the stock very much.
It's obvious this looks to be a bad deal, otherwise trading would have resumed yesterday at some point. Seems to me as though OPTI is looking very desperate. For what reason(s), I don't know. Anyone who listened to the Podcast from June 23rd would get a very different picture of the company and the Long LAke project
How much more of a discount does the street want? We are at +90% discount as is. The onyl ting that looks to save longs is if someone like TOTAL, NEXEN puts in a bid to buy OPTI out.
I hope I am wrong and stock goes to 5 bucks....but that just may be wishful thinking