TORO OIL AND GAS LTD V.TOO

What is holding this up

[NeverSurprised]

They haven't completed a private placement and there are as someone already mentioned going to be a billion shares. Warrants at 3cents . Don't get it. it should be trading at 3-4 cents?????What am I missing??

[mjh9413]

You cannot expect to get in at the same price as the Investor group who might be putting in as much as $26MM or so but agree even 10c buy-in would represent just over 9c per share after participating in Rights (which has still to be affirmed as a go) and while getting better than the 14c it rose to I might be tempted at 8c buy-in for a 2x relative valuation to investors and ~200boepd prodn

[mjh9413]

Just thinking out loud but could be this Team will garner others interested in the deal. I had assumed first of all it might be just the Investor Group but I am sure others might want in. But iff the placement is increased  it makes the current sp even less attractive but be interesting if they broaden the investor group just to see who's in. 

[perdikaoilgas]

The management change would happen sooner or later. KEC had zero growth all these years.

[perdikaoilgas]

Since KEC has enough acreage, it depends on the management connections and whether the new team can make 1-2 financings to grow the business.