Positive Perspective
Not trying to convince anyone or blow smoke up..you know where....just wanted to share my perspective:
Like all of us I would have liked to hear of a Provincial Permit....but here is why I think this financing is a great move:
1. We are trading at 52 week and ALL TIME highs right now. We've probably got about $7m in the bank. If the world falls apart tomorrow we are guaranteed $26m more and likely that will rise anywhere from $30-$40m with an overallotment and potential upsizing of the offering. Combine that with the warrants that are in the money -- the company has a potential $30-$50m war chest it is building. This new cash helps us in a bunch of ways (a) allows mgmt to speed up operationally (b) gives us way more leverage when we negotiate with a potential JV parnter (c) puts us in a category where large institutions can invest in us without the financial concern that we could go bankrupt. ALL POSITIVE
2. New institutions are getting in...clearly. New blood in this story is what we all need to get over the $2 hump...this is an appetizer amount for large institutions - we will highly likely see increased trading and volume after the deal closes. POSITIVE
3. Lets assume we got the permit today and rocketed to $2.25....guess what, we would need to do a financing and would likely do it at around $2, 1.95...whatever -- we'd need the $ to go negotiate a good deal...so we have pre-empted that situation and will not go backwards once we get the good news. POSITIVE
4. We are on the MAP -- whoever has not heard of us until now surely knows us tomorrow -- given the size of this deal. POSITIVE
5. In no way does this financing imply that a permit is not around the corner -- the law and regulation is clear that if the company had knowledge of such a thing they would have to disclose it publicly. For all we know the permit arrives in 2 weeks, 4 weeks or 6 weeks....i am quite certain no one knows. POSITIVE
6. Perhaps the most positive for people on this board -- the stock will likely drop to $1.75 or thereabouts for a day or two, maybe three....but we will be the same company with marginally more shares and a treasure chest of cash. We are all being given a gift of being able to load up around $1.75 knowing that $2+ is just around the corner. POSITIVE
So there you have it -- clearly I am interpreting this one way...do your own DD and consider your own factors...for me, this is a great move and I suspect we see higher prices before the end of the year.
GLTA