For anyone that has the "pleasure" of reading the quarterly reports put out by Elk today and not throwing up, here are a few comments:
Per the Elk clowns, we had a "small equity raising".
Yep, selling 15% of the company for under $1 million is a small equity raising allright - small as in reducing the value of Elk shares to small figures and reducing my stake in the company to a smaller amount.
And debt raising was not considered feasible due to:
"residual risks still associated with Grieve"
Folks, in the world of finance the highest risk is always for those who hold common stock. Debt ALWAYS ranks ahead of shares.
Now why in the world would all those savy 'sofiticayted' investors put money into high risk common shares when they could have had more secure debt with less risk?
Folks, the reason is pure and simple: the common shares offered a way to skim a whole bunch of profit off existing shareholders by getting shares way below market prices and dumping them before the other shareholders are able to get in on the SPP for their stinking little rotten $10,000 amount which will be scaled back.
With debt there was no way to offer the prospect of a quick profit to the favoured few.
IMO the entire process stinks and shows that the current BOD of Elk needs to be put out to pasture.
ELK Price at posting:
10.5¢ Sentiment: Hold Disclosure: Held
