What does form NI44-101 mean ?If you go to
www.sedar.com and look up the Public Company Documents for Quetzel, you will note that on Nov.12, 2010, QEI filed notification that they '' intend to be qualified to file a short form prospectus under NI44-101 '' '' This notice does not evidence the Issuer's intent to file a short form prospectus ''
So QEI has taken the necessary step to raise more capital.
Now while I agree that a dilution is unwelcome. It is not allways bad news for shareholders.
Look at Alange Energy. ALE has 747 million shares out. However, if you research the company's history, you will see that once they had a significant discovery with prospective future cash flow, they quickly raised more money to accelerate their drilling program. And since they are drilling in '' a highly prospective area '' , ( like QEI ) their subsequent success has led them to a 2010 exit rate of over 10,000 bopd production.
At today's share price of .54, ALE has a market capitalization of 403 million dollars
At today's share price of .22, QEI has a market cap of 71 million dollars.
And just maybe.....................QEI has aquired enough knowledge about this new reservoir to allow a more rapid plan for development well drilling...................... resulting in much greater production much more quickly than previously thought by management.
As events unfold over the next 6 months or so, let us hope that the market capitalization of QEI sees a muliple of what it is today.