TSXV:CLAS.H - Post by User
Comment by
CalifDreamingon Jan 10, 2011 3:06pm
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Post# 17949781
RE: There will be new shares issued
RE: There will be new shares issuedLooking at their presentation, their capex program is closer to $55MM this year (add in more for G&A etc). And while test rates indicate 3,900 bpd gross, they say they'll produce closer to 500 bpd.
They need to raise ~$35MM or more imo. That's why the sp is getting creamed. Looking at the current share price and aggressive selling by institutions,
.125 may be the price, adding 280MM more shares plus any warrants that may be issued. QEI could end up with 1B shares fd if they aren't careful, effectively wiping out much of the upside absent more exploration success.
QEI management have failed miserably wrt to managing the sp and funding. Most Colombian juniors have had strong buying interest and have backers willing to push the sp before the next round of funding. QEI is seeing just the opposite...