From the S-1 Filing:
Unless we specify otherwise in the applicable prospectus supplement, the net proceeds we receive from the sale of the securities offered by this prospectus and any prospectus supplement will be used for general corporate purposes. General corporate purposes may include any of the following:
providing working capital;
funding capital expenditures; or
paying for possible acquisitions or the expansion of our business.
We may temporarily invest the net proceeds we receive from any offering of securities or use the net proceeds to repay short-term debt until we can use them for their stated purposes.
.1. Why pay off Debt when Interest rate at 12/31/2012 was 3.21%.
2. Working Capital is a Yes. No Cash on Hand at 12/31/2012.
3. Funding Capital Expenditures is also a Yes. AXAS can drill more Wells using Pads to cut down Cost and not worry about Cash Flow.
4. Possible acquisition, IMHO is a No. AXAS has enough drilling location right now without stock piling more.