Manitok Energy Inc MKRYF

RE:Trading suggest placement has been sold.

[jerrybe]

Nice rebound today. Crazy, I hear you and I am down massively here (more than 50%)...I averaged down some but I am overexposed to this small player so I do not want to add too much, especially before the deal actually closes.

We all agree that Entice and the new deal are transformative for this company. I think we can all agree that buying back shares until last year was a mistake. Communication still needs to improve big time and Mass runs this firm as if small shareholders were completely irrelevant. 

That being said, the general tone of the board is one of high expectations. This is a very ambitious company and we all bought into the Entice vision (with Stohlberg backing). I think Mass tried every play in the book to avoid dilution  but as these schemes did not work out, he had to come to the realization that an equity issue was necessary. As much as I hate such a dilutive issue done at such low prices, the firm is now on much more solid ground, it was under-capitalized relative to its ambitions, period.

The key question remains: Can they steadily execute on all the land they acquired and at these low oil prices? If they can, then the stock price will be much higher in three years. Let's face it, a 25 Mboe/d company in a normal price environemtn does not have a market cap of only $50M !!! 

Am I happy with this dilution? Obviously not! But ultimately, Mass had to do it. I trust his bankers forced him to...GLTA! For newcomers, great time to jump aboard!