That would be 160Million new shares. 50cents is a far cry from the last raising at 77cents. It comes down to what they plan to do with the money.
Hopefully it is not all used to pay down debt. As equity is more expensive(in the longer term) to the company than debt (depending on the interest rate they are currently paying). It must be for their Sal de Vida project in argentina. To fast track it.
Reasons Working capital Pay down debt Fund Sal de Vida Spend it on fat bonuses and salary increases.
Jury is out for me whether this is a good idea or not. I don't like it but what choice have they got with such high cash expenditure and without the large amounts of cash supposedly coming into the coffers.
It is a lot of dilution 32% of the register. too bloody much. They should have just sold it to the highest bidder. Ill settle for 90 cents now and invest elsewhere. I was hoping they would be a 1.5billion dollar company someday. Maybe it is too ambitious for this crew.
GXY Price at posting:
17.1¢ Sentiment: Hold Disclosure: Held
