If what the company is saying is legitimate and that there was an offer made after the announcement a couple hours later then I can understand the position of both parties.
As you guys have stated above, it would be tempting to place a significant amount ($3.5mil at a 25% premium to the previous close) out to OGX before the price takes off (from the current result and future assays) and they'd have to pay maybe 50-100% more than 25c. Of course, this would only be the case if they were fairly certain that the story could be much bigger.
From OGX's side, I think it is understandable that they'd have no choice but to take the $3.5mil cash offered to them taking their cash balance up to $5.631 mil. OGX would secure their financial position and be able to accelerate the drilling.
I was a trader who bought the announcement in the 30's and so am deciding whether to continue to hold. My question to myself is whether I believe the company's stance. If what they say is legitimate then those who are participating in the cap raise surely believe the story and that the 21 holes to come might show similar grades which will explode the share price. Of course the share price may possibly be hammered tomorrow from open so it'll be a tough decision to make.
OGX Price at posting:
28.7¢ Sentiment: None Disclosure: Held
