GREY:PGDIF - Post by User
Post by
mill44on Apr 09, 2015 4:28pm
118 Views
Post# 23614045
Warrants
WarrantsI asked this question a few times before, but no answers. I hope now that it is all over, we can have a fair discussion about it.
21c rights with 21c warrants, basically a 1:1 offering at the time the SP was 40-43c with a backstop from the top 3 holders. No risk of the rights going unexercised.
Before, people were saying that the warrants should not affect the price, now some are saying that it is normal to have a drop like this if the warrants are that much lower.
Even with the dirt cheap price, 1/4 of the warrants were not exercised.
So we knew how much money we needed. Why the 21c for everything? Couldn't we have gone with less dilution and a better conservation of the SP?
My take 6 months ago was that it was for the big 3. The outcome does not contradict me and apparently the market does not mind purchasing PGD for over 25c. Some people are saying that it was a good execution from management. If we only look at the money, you might say so. But were did most of that money come from? It could have come from the same place for less shares, but it was up to them.
This whole deal resembles the stories I heard from former socialist/communist countries. You have a state owned company, very poor performer. You have the director (CEO you would call it here), the chief accountant (CFO) and the chief engineer (COO) responsible for the operations, as poor as they might be. The state decides that it is better to sell the company, get some money for it, instead of losing. The 3 chiefs buy the company and the next day it turns profitable.