Any common shareholder with any investing experience will tell you that a convertible preferred is the most damaging kind of financing to common shareholders.
I thought PVA was smarter than that -- and had our interests at heart.
The company had been making a lot of good moves and seemed to be managing its liquidity issues.
As someone who has posted positively on PVA, I am extremely disappointed in the decision of management to do this type of financing package.
It will be a long time before PVA ever regains the trust of its common shareholders.
The underwriters must love this deal.
Where is any explanation from PVA regarding how this will benefit the company (and us)?
PVA has 10.375% bonds of 2016 that are callable 6/15/2013, If it can raise money successfully via equity, it can call in its bonds and gain liquidity to develop its acreage. Let's hope the equity sale goes well and they are able to call the bonds. This is good for the company though I will not like seeing my bonds called away.
Excellent point on the bonds and liquidity. Listen to their presentation to Imperial Capital last month and hear the clues Baird dropped. If you're a jilted long with a cost basis above the placementprice, you've got to buy more to average down. This is a good story.