Dilution In their last press release the management speak about paying the next 6 months Sprott credit facilty interest with RPG shares.
It will be probably be done around 20 cents a share. The IR (Interest Rate) is $4MM so they will have to increase the number of shares by another 20MM. As they are cash trap they have no other way to do.
The number of shares after this fundraising will be 305MM shares outstanding
Then they speak also about fundraising for Geysers and Casita. You will need to raise at least $30MM. If we take again 20 cents for this fundraising so increase the number of shares by another 150MM shares to 455MM shares.
This is exactly the kind of vicious cycle I was speaking cosmicautist since more than a year. Dilution bring the price down make even more dilution put the price down.........
The main problem with RPG is their $50MM sprott credit facility with 16% IR. It eat all the CF generated by SJT1&2 and brings more dilution.
Exactly what I wrote on this board 1-2 years ago. My 20 cents has been reached now. I would even not be surprised if we reached 15 cents this summer because of all I wrote above.
Anyway Good luck to you.