I have reread my previous post that this relates to and have decided to repost in a less forceful manner in order that it does not come across quite so aggressive.
Snug; You state that they have about 3 mill in the bank, and require approx 5 mill to complete the exploration of Big Daddy as per the Micon study. Those figures are correct, to my knowledge. They are now attempting to raise another 3 mill. This will give them sufficient funds to complete the program and a bit left over. To my knowledge the PP is not complete, and it could be a single entity doing it or they could be going to the market for it. Either way, it is necessary. They require 5 mill to do the job and to start it with any less than the 6 mill they hope for would be silly. Thus the PP is absolutely necessary, regardless of what anyone says. It would have been good if it had closed @ .06, but now they have to try it at .05. If this doesn't work, then they have to try it cheaper than that, as they need to drill in order for us to realize any gains, and they can't drill unless they raise the funds to do so. Would anyone be so irresponsible as to suggest that they start drilling now and once they hit they can raise the rest at a higher price?
This brings up my position that it is the wrong time to discuss a RS. If I was an investor looking to put some money into this PP @.05, but heard thru the grapevine that as soon as it closed they were going to do a RS, I would take a walk. I would know that if that rumor had any truth to it, they would never do this PP and I could just wait until they did a RS first and then probably get it cheaper. I say probably, because as has been pointed out sometimes a RS works to our advantage, and it might here as well. I also am heavily invested in SPQ, and would be very disappointed to learn that they have to do this PP at 4 or even 3 cents
My point is not that a RS is wrong, or that this PP is wrong. I just believe that discussion of the RS is inappropriate while the PP is being done.
I also have been unable to speak to NN, but when you do, I would bet dollars to donuts he will agree with me.
Regards
K
