Temple Hotels TMPHF

Rights Offering

[KnowledgeSeekr8]

How are investors feeling about this? https://www.newswire.ca/news-releases/temple-hotels-inc-announces-50-million-rights-offering-600241021.html I've got mixed emotions on this as they are doubling the float of shares outstanding, but we are paying off debentures that will help pave the way for future success. I do wonder about the timing of it as the share price is very low. I think this mean the Q3 numbers aren't great or they would have waited to release those numbers and a SP pop before the rights offering. Any insight?

[righand2]

A few major issues are raised by this. Why are they doing it before Q3 results are released? While true insiders cannot trade on what they know, many others can, which puts the public investors at a disadvantage. Second, with an effective share price of about 64 cents from the rights offering, they just screwed those who have been supporting the stock for years. They priced the rights at a 35

[KnowledgeSeekr8]

I guess the market is giving me this answer. Down pretty close to the rights offering after 4 hours of trading since the news. Am I ever kicking myself for now getting out when it hit $1.50+ back in the early summer and taking my losses then. 2016 has not been a good year for me and this news was not what I was hoping for from Temple this month. Look out below with another poor earnings call for

[DanielDarden123]

Simply demonstrates the risks inherent when trying to live on debt. The horrible balance sheet (and debt holders) has forced this action clearly. Their options are severely limited.

[KnowledgeSeekr8]

Agreed Daniel, that is the unfortunate truth. They have no assets to sell to reduce their debt or if they did sell them they would be at fire sale prices which would leave them out on paying the mortgages off as they may not even fetch a price to cover what they owe. I was truly hoping that something positive for Temple would come out of the tragic fire ravaged area, but it truly looks like