Last time I checked it appears that there ar still another eight months till 2011 and three rac to complete.
So this is the way it SHOULD HAVE BEEN DONE BY EKA AND ADI:
You wait until the fracs are complete in June or July and then you still have another 5 months to raise cash, and IF
1. The wells hit and come up as huge successes then you could have done a SPP at twice or three times the price.
2. If the wells were dusters of not so good, it really wouldn't matter and then you gp to the market for funds, and the biggest source of funds is the biggest shareholder with lots of cash.
3. Get a loan and use the company assets or the DIRECTORS' PERSONAL ASSETS AS SECURITY.
IMO the only reason many companies don't go the loan route is that it limits the profits that the 'sofisticayed', the underwriter, and the 'in crowd'. These get to skim from the company through the deep discount shares
No profit for those in the 'in crowd' from a loan or bonds and it also limits how much monkey business can be done as well.
ADI Price at posting:
29.5¢ Sentiment: ST Sell Disclosure: Held
