I hardly think the capital raising fiasco is a great outcome given where things started many many months ago. I think many shareholders have paid more than the prices that Springtree and the current mob have scored as the expectation from previous announcements was for the main raising at a substantial premium for a substantial stake.
I have experienced other stocks suffer discounted raisings but the discount on this one has effectively happened twice and they clearly stuffed the deal on technicality.
At the end of the day this can hopefully now be put behind us (the whole package - $8 million - isnt finalised yet - there is more work to do)and hopefully establishing access to Canadian capital/investors will help the company to achieve greater value for all of us.
At least they have the cash for the next well so Im hanging to hear that the rig is moving to site and will commence drilling in the next couple of weeks. Im also looking forward to the next six months of drilling projects and testing.
Clearly now is an opportune time for some to be building a strategic position (post raising/pre drill).
SGY Price at posting:
$1.58 Sentiment: Buy Disclosure: Held
