Incredibly dilluted financingThey plan to issue up to 20.000 units of deventures, each unit consisting of 2.500 common share purchase warrants.
So, the creditors will have the right to purchase up to 50.000.000 shares in the future at today´s rock bottom share prices. The broker (AV securities) would also be entitled to receive warrants exercisable into up to one million Common Shares at the same prices as the Warrants.
Almost a 50% increase in the fully dilluted share count.
Coupled this with the high interest rate (13,%) and the relatively short repayment period (24 months).
A couple of issues like this, and I can see another share consolidation in the not too distant future.
An all of this done just to finance the development of heavy oil projects in a low price environment.
It doesn´t look like as a deal done in the best interest of shareholders.
Just my oppinion
Fernando