Serial equity issues are destroying value not creating itLast year in May 2014 Canacol issued $125 million of new equity at $7.90 per share diluting shareholders and catching the market off guard as they had guided the market to expect no further dilution. Market hated the financing and lost all confidence in Gamba and as a result the share price crashed to a 52 week low over the next 6 months of $1.40 per share.
Fastforward, Canacol is suposedly on the cusp of realizing material cashflow from completion of the construction of a gas pipeline at the end of the year and management goes and sells 20% of the company for $2.50 per share, which is not too far off the 6 month low, after once again the management team was comforting the market that their balance sheet perfectly fine and not in need of new capital.
This leaves a bad taste in my mouth and I think many other shareholders must feel the same way except for that goof Dave, which I thanfully have on ignore but manage to be inidated with his garbage when I check SHBB on my phone. Nice to see the stock up on the news but that can easily be orchastrated by the pumpers that are involved in this story.