RE:RE:RE:RE:RE:RE:Private placement offeringCapharnaum wrote: sampleminds wrote: as a percentage of total equity when added to the pool - 6.25% (roughly)
Can use that as a gauge on how the share price might react (less than 1 dollar of volatility on the charts, which if you look at the stocks historical volatility, it's pretty well in line with the averages).
Hope that helps!
I think it's a good deal. Interest paid is about on par with dividend paid on normal shares but it is tax deductible (so net impact on cashflow should be lower than issuing shares).
Imo considering that revenues should keep on ramping up as time goes by, it's like issuing shares at a higher price while in the meantime paying out less cashflows and diluting less.
My guess is that they want to ramp up the new projects quicker than they could just using cashflows they get right now.
PIF has over $40M cash in the bank -even through Peruvian asset development is in full gear the cash levels are being maintained. Management is not going to borrow money at 7% interest unless it brings back a far greater return on investment. I trust that we will hear news shortly and I fully expect to hear about an impressive deal that adds diversification that we want to see along with adding significant shareholder value.
Kudos to management here. I can see $30 shares on the horizon.