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TransGlobe Energy Corporation Message Board

  • friedrich_telecom friedrich_telecom Jan 10, 2011 10:45 AM Flag

    Deal does not look to be a dilution - no new shares were issued

    From the little info I have it "looks" like TGA is not issuing new shares for this deal. Maybe they use Treasury stock or founders shares. I like to think so because dilution HAS to be announced. Getting a group of investors to buy a large chunk of stock at a favorable price is one thing, issuing new shares to get more money is quite another. If that was the case then all the chatter about conservative, wonderful, caring, investor-oriented management team at TGA would go out the window but quick.....and...the fact that Investor Relations did not prepare the owners (us) for this, has me upset already. This was not discussed at the last earnings call (please correct me if I missed it somehow...) Comments please.....

    On the good side.....this should make $15 a real strong support level....obviously them boys did not pay $15 (Candadian/US Dollars are virtually 1:1 these days....) if they did not expect at least a 30% return in the next few years on the deal....and they had access to a lot better information then we will ever have.....

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