GREY:CLGRF - Post by User
Post by
clestoron Aug 17, 2012 2:14pm
257 Views
Post# 20230442
LSG down 15%
LSG down 15% LSG sold a convertible debenture, diluted shareholders by 15%. Mgnt had warned that they might need to raise some money but this was much worse than investors expected.
I wonder if Claude is about to sell a convertible, also.
On the conf call, CEO said they are looking at term sheets, so sounds like a financing could get announced any day. I think they need enough money to pay for the winter resupply plus some cushion. They spent $28 mm in 1Q12, but 1Q13 will cost much less . . . guessing $10 mm to $20 mm.
Just thinking out loud . . . $30 mm convertible at $.75 dilutes by about 19%