RE:RE:RE:Feeling sad & depressed, any chance this hits $1 next year?Phatboy2 wrote
You pretty much nailed it, Sclarda. The $375 million market cap you mention must of included the 1/2 million share dilution as the current market cap is only $175 million.
My only concern about AR is the management. Either they out maneuvered by the banks on this deal or they colluded with them. They essentially handed control of the company to them as the 10 investment firms will have a majority of the shares. Shameful what Dougherty built up over a decade, these buffoons fumbled away in months.
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Maybe AR management looked around and this is the best deal they could get. When you are desperate for money and quite a lot of money for a small company aprox. $500 million Cdn. the lenders are in the drivers seat.
And the reason the company needed so much money is that when Dougherty was CEO he oversaw the beginnings of the Magino project that was supposed to cost aprox. $480 million balloon to $800 million and now over $900 million. So i would not be singing his praises either as he was one of the leaders who got this company into this trouble in the first place. And the project is now a little over budget either as often happens. It is aprox. $440 million over budget on a $480 million project. Of course some of the others who were running the show with him are still here but the CEO has overall responsibility and the buck stops with him and he had to take the fall.
As for the private placement shares the investment firms will sell those shares to investors and as there are well over 400 million new shares issued there likely will be all kinds of different owners for those shares so i dont know if anyone will have control of the company any more than they do now. Of course for existing shareholders who owned 100% of the company and will now have less than
50% it is a kick in the pants but thats what usually happens when you have a huge Fu@ck up like
this existing shareholders get the worst Cornholing.
That being said all these problems have given existing shareholders the opportunity to average down on a company should be a low cost 400 000 ounce producer in a couple years and is currently trading at 10 to 12% of where its competitors of that size are trading right now.
And for potential new shareholders the opportunity is even better
. Count me in.