Further thoughts on the KOB financing...
Why did this revision take place?
KOB obviously needs cash to fund it's portion of ongoing ELH exploration.
I honestly think that KOB management expected BKP #2 to have hit by now.
The Sept 18th NR, the same day as a large cross of KOB stock, indicated that insiders would purchase the units at $1.20.
They clearly believed that the KOB share price would go higher than $1.20, and it did, for a couple of days.
However, delays cropped up, the KOB share price dropped, and that $1.20/unit price didn't look so attractive anymore.
Presented with a much lower current share price, a new deal was formulated and quickly implemented, since KOB still needed funds and needed them soon.
The PP, as stated on Sept 18th, was for $600,000 to purchase 500,000 units @ $1.20, each unit carrying a share and a half warrant.
The total dilution would have been 750,000 new shares, raising $900,000 (after exercising the warrant).
The PP, as announced today, is for $636,000 to purchase 600,000 units @ $1.06, each unit carrying a full warrant.
Total dilution is 1,200,000 shares, raising $1,272,000.
From the point of view of the "insider" that took down the PP, today's revision is a great deal.
From the point of view of the KOB shareholder, the revision is very slightly less attractive than the original.
Any other thoughts?
S&P
PS: The fact that "insiders" bought the PP again increases my confidence in ELH (as if I wasn't confident enough already!).
PPS: I wonder if KOB is still planning to do it's 10 for 1 rights offering.
PPPS: Where is my flare, dammit? |
