Invictus should have a Renounceable Rights Issue say at 35% of the number of Shares at 12 cents per share to raise about $24m for the up coming drilling campaign. Then all share holders can either participate in the raise or sell their Rights on the Stockmarket. Cluff can then pay what the Shares are worth and any other company/ individual can also bid for them.
I predict the rights and shares will immediately appreciate as this would remove funding uncertainty and I believe there are a lot of people believing in this opportunity.
Every indication so far suggest the gas and condensate is there. The Cluff deal stinks and I for one is prepared to contribute to a Rights issue to make sure as much of the pie is retained by shareholders.
PS: just because one thinks the Cluff deal is a stinker, does not mean you are a down ramper. This company has the best risk reward profile on the stock market. Why should we undersell for a few shekels that we can raise anyway.
"A renounceable right is an invitation to a company's existing shareholders to buy additional new shares in the company. Shareholders have the "right" to increase their investment exposure in the company's stock. However, shareholders can renounce that right, meaning that they can trade those rights on the open market. The number of additional shares that are offered to shareholders is typically in proportion to their existing shares owned."
IVZ Price at posting:
12.5¢ Sentiment: Buy Disclosure: Held
