re: Ann: Conditional Funding to Accelerate 20...
Davo,
Its good to hear the other side. No point just having a forum of fanboys.
But you seriously have a chip on your shoulder about this stock. This is the best announcement by AOK for ages.
They have quality land. They have minimal cash. They need cash to devlop their acres.
As I've said before, the options in order of preference were a) Finance b) JV c) Cap raise
As it turns out they did all 3 - placement - JV on two wells. The one with Range was almost certainly for minimal cash outlay and will also increase their knowledge base - todays Convertable notes (finance)
The notes by far form the bulk of the funding. It causes no immediate dilution. At most it will dilute at 15c which is higher than the curent share price and double the recent low. Their appears no incentive for note holders to push down the share price to try and get a better conversion rate. Which means positive drills should get traction.
The recent run on the stock was probably due to this news.
Frankly if you think this is a bad deal your secretary is serving up more than beer!
AOK Price at posting:
14.0¢ Sentiment: Buy Disclosure: Held
