News: AJQ Armour Energy To Raise About A$32.0 Million, page-3

Hi PMK, i looked at it yesterday.

On my reading, the raise is really only $12m of fresh equity and MOG notes just get exchanged into Armour notes.

$6m of that is going to partly repaying the senior secured debt and after the costs of the raise there'll maybe be $5m of equity left. This maybe gives them another 6 months at most before another raise.

The armour notes have options attached to them at 6c, so if there is any spectacular upside here, normal equity holders aren't going to get a whole lot of it because there's another 3.5bn shares that will come from the armour notes, which are also acrruing interest & therefore more options at 10% p.a.

If DGR really believed in the prospects here, they'd likely continue to invest via the MOG/Armour notes as they were doing the last 6 months.