I think major investors have been offered blocks of shares at or below 10c. Kagara will come out of this with zero debt, a 75-100 million dollar new debt facility and with about 50-100 mill of new funds depending on the offer to major investors. That's why the price is sliding. Last time it jumped 40% afterwards over 5 weeks so it's all relative. You just have to wait it out another week.
Admiral Bay, Cash in escrow and possibly the sale of the entire Southern region assets may have probably been used as collateral steps in the event of any future milestones that are not achieved.
Last time the cap raising of $262 million was to pay off about 150-175 mill in debt. Totally different ball game this time round. The debt is back to zero already, so the upside could be much larger this time round as far less dilution will occur after all is said and done. i.e. only need to raise operational funds of 50-100 mill, not 262.
I'd give it 2-3 days before we see a real bottom in and sellers running to cover en masse.
KZL Price at posting:
11.0¢ Sentiment: LT Buy Disclosure: Held
