Alterra Power MGMXD

RE:RE:RE:RE:RE:What's with the news now

[R_J_]

Alterra Power Announces $50 Million of Equity Financings
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https://www.alterrapower.ca/news/Press-Release/News-Releases/News-Releases-Details/2016/Alterra-Power-Announces-50-Million-of-Equity-Financings/default.aspx
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Louis James Comments
Quote:
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We’re not generally keen on dilution of our shares in any profitable company.
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However, knowing that much of Alterra’s cash flow must be going into digesting the refinancing of the HS Orka bonds, we’re not surprised about the company raising some extra cash.
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Plus, Alterra is not a cash-burning exploration company that does little more than sell stock to keep its drills turning.
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AXY makes money, has a great project pipeline, and we've seen it deliver many times in the past.
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All this makes us confident management will put this cash to good, and more growth-oriented uses.
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It’s also good to see Ross Beaty buying into the offer as this shows top insiders are willing to put (even) more skin in the game.
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Meanwhile, one of the big risk factors in this play is already behind us.
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Altierra was successful in refinancing HS Orka’s debt (before it would be due in December 2016) as per the previous release .
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While we didn’t expect Ross to step up to the plate and supply the second tranche (50%) of the refinancing, the retirement of these bonds was an integral part of our investment thesis (next to the dividend initiation and the successful start of Shannon operations, if lower in importance) and so we’re very glad this happened.
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End Quote.
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RJ