my commentsFirst off, FI that was an amazing post. Thank you. Also blaggers, thank you for connecting with management. My views are as follows. Is the management (specifically JFM and JSL) really really stupid or really really smart??
That depends. They could have easily taken HELM's deal and the share price would have easily surpassed $2. We could be sitting at $2.10-$2.20 right now, singing and dancing in jubilation. But they didn't. It takes balls to say "no". We don't think this is good enough. We can get more value elsewhere. You do this knowing that the share price will PLUMMET!!!! Which it did.
But folks, this isn't the end of the road. Management know they deposit is worth more than what HELM was paying. In fact I believe Blaggers mentioned it was more "significantly more" upon his conversation with JFM.
Look at FI's post. The numbers he comes up with are truly SIGNIFICANTLY more than what HELM was paying.
So in the end, CRE will get another financer. Yes it may delay things a little bit (maybe by a couple of months), but they will get there. Yes it will drop the share price a little bit more, but if you don't plan on selling anytime soon....who cares??? Just the more reason to pick up more shares.
Time will tell. Did JSL and JFM make the right decision??? They could have been rich right now. My opinion is that there is another investor (or group of investors) that they are currently having discussions with that will
a) ask for less then 25% of the project (like HELM did)
b) pay more than what HELM was paying
Or.....I'm leaning towards option c) Which is the fact that this new investor will ask for 25% of the project but will finance the whole thing (or the majority of it). So in the end, CRE will have to issue less shares (less dillution), and so our share price should essentially be higher (than it would have been if we had gone with HELM). But the general market does not understand this. So down we go in share price.