overallotmentsOne question about this financing is whether the over-allotments will be taken. If so, the financing raises $92m but there is also more dilution. Still, an extra $12m could help make the deeper drilling more likely.... given today's close at
.72, it seems that over-allotments will happen. (If you have the right to buy at
.7 and sell at
.72, why not?)
Second, I think it is worth pointing out to those who are unhappy with the financing that the real payment to the Board is chiefly in shares and options. Why would they have done tihs financing if they expected it to be worse than a farm-in for the value of the shares? To put this into context, Steve Hermeston just got 500k options at
.80. Obviously, the management team felt that this was the way to proceed. They aren't interested in seeing the value of their shares and options slide. Having said that, if they did this financing in order to ensure that they could meet their obligations to Guyana, why not say so?