Disagree. this is the type of action I'd expect from a company in desperate straits........Reducing debt by 12-15% doesn't really give us much.
Something is not right.....either the refinancing fell apart or there was a sweetheart deal made. Either way, longer term, our units are worth about 30% less. They probably could have issued 15 million units at $9 this week.....
I agree. This seemingly does not make sense. I'd be happy to be part of this issuance as well, maybe I just need to know someone. This stinks of an inside job, and leaves we very disappointed with management. They obviously have buddies who in their minds deserve better than existing shareholders.
Of course, this could be accretive to earnings if this replaces a line of credit greater than 10% interest rates, or in a stretch, a more favorable refinance that substantially changes with this capital injection. No matter how you look at it, though, this really limits XTEX's options.
I think I see the light at the end of the tunnel and it might be where I get off this train. I bought because I thought management was solid. I'm definitely losing that feeling.
Remember, the price has been rising very fast over the last couple weeks. This deal didn't get put together in a week. I would even guess the price was raised. It only looks bad because of the price increase of the last few days to a new 52 week high. I think most of us hoped they could refinance without having to resort to a big equity issuance. Now that they have done this, the question is, is the new reality a good one? I think it depends on what kind of investor you are and your goals for owning this stock. If you are a long term holder wanting distributions then the price is fair or attractive. If you are looking for big share price appreciation they just messed that up.