I agree RichardNixon .. the article is Sensational Journalism" at its best ... based very loosely on truth.
All shareholders benefit from the 1:1 offer ... if they cant afford to take it up, then them's the breaks!
As for the "Conditional" placement and $15k SPP ... I for one think its a BRILLIANT idea. Why? Because the 1:1 entitlement offer is now closed. The chance to get $15k worth of shares is a "carrot" to entice buyers to keep buying shares in the face of current holders selling to pay for the 1:1 offer. Also they are not giving the $15k away cheaply ... it will be at the VWAP of the 5 days prior to the offer closing, and is only for US$50-$75m, barely 10% of the total raising, and will just cover the FEES of the restructure!!! ... Insignificant in terms of the overall deal.
There are for's & against's ... but essentially this is more a "Restructure and Racapitalization", than a simple "Capital Raising" ... Massive dilution on one hand, but they come through it with debt reduced by 80% to a very manageable level, with the resource sector stabilized & improving, and drilling contracts on the up.
Interesting times!
BLY Price at posting:
35.5¢ Sentiment: LT Buy Disclosure: Held
