Very BULLISH sign: Haywood clients want to be part of RECOThis bought deal is extremely BULLISH sign for RECO.
It means that Hayword clients want it, it also means that they believe that hole #2 will be a success.
Bought deal was done just in time before it becomes insider information as they drill hole #2.
I believe that institutional demand is going to heat up as we move higher.
And the discount given to Haywood is minimal, almost at the price in which shares were trading. RECO rewarded Haywood by giving them a bought deal as they did not really need the funds.
This puts RECO in an even more powerful negotiating position with major oil companies.
And once one big institutional firms buys, watch as the rest will follow their course.
Dilution was very minimal at 1.6% in return for lots of cash.
mpo