Still doesn't make sense
So for the sake of turning a quick $5 million profit by moving the royalty from Barrick's pocket to Franco's, Skeena has given away at stupid prices over 7% of the company.
Yes, of course, at this stage of development Skeena has an insatiable appetite for cash. However, if this is all so carefully orchestrated, the royalty buyback timescale having been set years ago, WHY didn't the company arrange to sell stock at double-digit $ per share. It wasn't all that long ago that SKE was worth $15 per share and more.
The company still has/had open to it the flo-thru share angle. If you could sell tax-advantaged stock at $8, $9 or more even in this distressed environment, please explain what is the rationale?
Whatever it is, it better be good. The company has absolutely desrtoyed its credibility, in my eyes at least. A very clear message has been sent: when we need the money, or think we need the money, we're prepared to raise it at ROCK BOTTOM prices. Think on that.
Over the last few months we've witnessed in the Cdn. jr. gold sector a couple of blowouts where existing shareholders have been tossed into the gutter: Argonaut and Marathon. Without anywhere near the pressure those companies found themselves under, Skeena has folded like a flimsy tent.
Tragic.