Post by
maritimedreamer on Dec 04, 2019 10:54am
OGI vs FIRE ....... cash access
what are people's thoughts on OGI's recent annoucement of a 55mm ATM equity program? HOw would this copmare to Supreme obtaining 90mm form BMO term loan/op line? i find it quite interesting that OGI went this route.... i thought they arleady had access to capitla from BMO? so what has changed why the ATM now instead of a loan increase...... this is a form of dilutive financing (even though at their control) i find this interesting why they went this route. were they declined an increase or something? to me the fact Supreme obtained this and other bigs are not is interesting to me...... thoughts?
Comment by
theTransporter on Dec 04, 2019 6:41pm
Normally a company would resort to ATM equity if they were unsuccessful at obtaining a top tier financing product like the one that Supreme secured. ATM equity is dillutive in nature, but it's not as bad as having to conduct a private placement which is typiclaly done at a discount with warrant incentives. Has OGI every received bank top tier fnancing in the past?