NEWS IS GOOD....LESS DILUTION!!!!!Hello Everyone,
News is actually pretty good.
Financing is:
37.5 million shares at 20 cents is......................... $ 7,500,000
Plus: 18,750,000 shares at 30 cents is...................5,625,000
Total Financing: $ 13,125,000
Total shares issued 56,250,000
Average Issue Price: 23.3 cents
ANALYSIS:
The company will receive $ 13,125,000 compared to its inital PP of $ 15,000,000. Total raising is similar.
The difference is that LFD forgos having to sell an additional 30 million shares at 50 cents in the intial PP. This would have resulted in more dilution. The company feels that it saved this dilution and if they need new funds they would do it at much higher prices as they do have an oil discovery.
SNM discovered 6,000 barrels of oil per day, valued at $ 300 million
WZR discovered 6,000 barrels of oil per day, approaching $ 300 million value
LFD valued at only $ 38 million to date. They do have 5,000 barrels of oil per day, meaning that it should be a $1.50 per share stock.
Relax, when you look at this deal, it is much more explosive overall and, less dilution to shareholders.
JMHO