Market didn't like the PPNot bad news I expect the sp to recover, especially if oil prices increase in 2024. The offering was given to 4 US institutional investors so that is good in terms of they clearly think that there will be a significant return on their investments.
- The offering was only for 2.2 million shares at $2.25 but with no warrants which is good.
- The $2.25 price was quite fair given the three month average was about that price point so no real discounts to the US buyers.
- The 2.2 million represents about and additional 1.6% of the shares out so not too dilutive.
- It is directed to the 2024 capital expenditure program and for work capital so at least it will be the driver of the capital expansion plan and increase output and profits for the company. the term loan is expected to be paid off by Q1 2026. Some