Per the proxy materials for the Annual Shareholder meeting to be held on November 16, the board is requesting an increase in the number of authorized common stock from 70 million to 140 million. They are claiming that under current circumstances, if all options, warrants, etc were to be executed, that only 5.8 million shares would be available for issuance. They wish to increase the authorized shares for strategic acquisitions, etc.
What does this all translate into? DILUTION.
I guess the majority of that $400 million shelf offering is indeed for equity offerings. I was intending to purchase a significant amount in the low 5's but now I'm not so certain.
Sentiment: Strong Sell
Is comparing TPLM vs KOG or to other "drillers" valid comparisons? TPLM has gotten their hands into all of the infrastructure businesses which are all high profit margin busineeses of the Bakken, in addition to lowering TPLM's cost of drilling. Rockpile (fraccing) profits $ 1 million per well worked, salt water disposal highly profitable and now the pipeline business (Caliber Midstream). TPLM would do well just sticking to the infrastructure businesses............
They are also requesting the authorization of 22.5 million preferred shares. I'm starting to contemplate if I ever want to get back into this company with what's going on. They intend to decrease current shareholders' percentage of equity ownership considerably! If even 1/3 of these authorized shares are issued, the stock price could easily go to the $2 range.
do you trust management to invest that equity wisely? if not, don't buy TPLM.
If you do trust management, you know that whatever they invest in will pay off in spades...me, I think theya re setting up to do some bolt on acquisitions to help company get to critical mass sonner.
It reall is simple, you either trust management or you don't and so far, this management has been nothing if not shrewd about turning investment into positive growth. this isn't ssn or useg, more like kog or bexp wrt how well it is being run
maybe you should be buying bonds or BP instead of investing in a small cap energy exploration and production growth company
As is true for shares presently authorized but unissued, the future issuance of Common Stock authorized by the Authorized Share Increase may, among
other things, decrease existing stockholders’ percentage equity ownership and, depending on the price at which they are issued, could be dilutive to the voting
rights of existing stockholders and have a negative effect on the market price of the Common Stock.
The Board of Directors proposes and recommends increasing the number of shares of Common Stock from the 70,000,000 shares that are currently
authorized for issuance pursuant to the Triangle-Nevada Articles of Incorporation to a total of 140,000,000 shares of Common Stock. Of the Company’s
70,000,000 shares of currently authorized Common Stock, 44,318,486 shares were outstanding as of October 8, 2012
The Board of Directors believes that the Authorized Share Increase is advisable and in the best interests of the Company and our stockholders. The
Authorized Share Increase will provide us with flexibility in completing financing and capital raising transactions, which may be necessary for us to execute our
future business plans. Other possible business and financial uses for the additional shares of Common Stock include, without limitation, acquiring other
companies, businesses or acreage in exchange for shares of Common Stock, attracting and retaining employees by the issuance of additional securities under the
Plan, and other transactions and corporate purposes that the Board of Directors may deem are in the Company’s best interest. We could also use the additional
shares of Common Stock for potential strategic transactions, including, among other things, acquisitions, strategic partnerships, joint ventures, restructurings,
business combinations and investments. We believe that the additional authorized shares would enable us to act quickly in response to opportunities that may
arise for these types of transactions, in most cases without the necessity of obtaining further stockholder approval and holding a special stockholders’ meeting
before such issuance(s) could proceed, except as provided under Nevada law or Delaware law, as applicable, or under applicable NYSE MKT rules. As of the
date of, and other than as described in, this Proxy Statement, we have no arrangements or understandings regarding the additional shares that would be authorized
or immediate plans to consummate any such transactions. However, we review and evaluate potential capital raising activities, transactions and other corporate
actions on an ongoing basis to determine if such actions would be in the best interests of the Company and our stockholders. We cannot provide assurances that
any such transactions will be consummated on favorable terms or at all, that they will enhance stockholder value, or that they will not adversely affect our
business or the trading price of the Common Stock.