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Bullboard - Stock Discussion Forum Voltalia Ord Shs VLTAF

Voltalia SA is a France-based holding company engaged in the renewable utilities sector. It designs, develops and operates electric power stations in numerous countries, such as France, French Guyana, Brazil, Greece and Morocco. The Company generates electricity using a variety of renewable energy sources. These include wind, water, biomass and solar power. In addition, Voltalia SA specializes... see more

PINL:VLTAF - Post Discussion

Voltalia Ord Shs > Avion's creative financing
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Post by ALLEN4 on Mar 29, 2012 8:52pm

Avion's creative financing

someone posted recently about idea of VTR selling futures of its gold and sent the idea to Kevin Bullock, who did not dismiss the idea but provided a general response. I see today that Avion has raised $25 million US by selling calls on gold at an average strike price of $833.00. They sold 36,000 ounces in this fashion to raise the money. $833.00 sounds awfully cheap considering today's POG; however when you consider what Kiaka's gold is being valued at ($28.00?), and consider that 36,000 ounces is a drop in the bucket of the at least 5 million we have, it sounds like a great way to raise our next $25 million, much better than another dilutive sale of our shares. Here's the link to the Avion info

https://www.kitco.com/pr/1267/article_03292012195153.pdf

Comment by JohnGalt on Mar 29, 2012 11:27pm
  I’m glad Kevin was able to provide a bit of an explanation to my question. I still think that this could be a good means of future financing as well as a hedge to a drop in gold price. I think this could provide some stability which would attract investors with a lower risk tolerance. We may limit some profits; however I would rather hedge a bit of risk and avoid further share dilution at ...more  
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