I wonder if there is going to be a large capital raising here. The last ANN said that the Board continues to assess the capital structure of OPG, and whenever a company even mentions their financiers in an ANN, it is problematic.
OPG has 65% debt ratio (at $63m debt), but maybe even more with this new loan. It has negative earnings by a large margin. The market may be reacting to the new loan, which it hates- yes, Ocker- it may be usury, but unfortunately, usury is a moral term, and the market isn't very moral.
The assets sales won't occur until late March/April, so OPG is still clouded with debt. Until a raising occurs, there seems no need to rush in to this one. If it is like SYM/PTL (I own that share, but I certainly am not recommending to buy!) it raised loads of cash, but at rock bottom prices, and now owes as much as its market cap. That could be a much better outcome for OPG than its current situation. SYM also got $10m of debt forgiveness, so it must have been very close to being on its last legs.
OPG Price at posting:
25.0¢ Sentiment: None Disclosure: Not Held
