AL R
Fridays release on Canada Stockwatch related to the closing of the public offering. A very similar release was already out on other services a few days earlier. I wil include a copy below. IMO there were a number of investors that were betting that the dillution would panic the market and that the stock would drop after the public offering was closed. When the market did not drop , they ran for cover.
The offering is nothing more than a swab of debt for equity if you get right down to it, and I think most investors prefer it that way, especially in light of the high cost of debt they were carrying.
I agree with you that short term it will drop a bit, probably to about $0.34 or so. The next move up should happen when the line of credit is finalised.
All the best,
Robert
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Offering closes
Pallet Pallet Inc PLT
Shares issued 30,241,611 Mar 6 close $0.31
Fri 7 Mar 97 News Release
Ms S.M. Topping reports
Pallet Pallet has closed the public offering of 16,666,667 shares at $0.30
for $5.0 million. In addition a further 2,000,000 shares were issued
pursuant to the exercise of an over-allotment option for $600,000.
The agents for the public offering were First Marathon Securities and
Porthmeor Securities.
The proceeds of the issue are expected to be used to retire existing debt
and for working capital. The completion of the offering also satisfies one
of the conditions precedent to a US$22.2 million credit facility with Bank
of America Canada and BankAmerica Business Credit.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com |
