The reasons are in the proxy. I don't see how a 10 for 1, which might - might - move the pps tp $1.50 gets us near what we need for institutions to take an interest, unless - as I wrote before - there is another shoe to drop. The board only has until November 15 to use the reverse split authority. This strikes me as very interesting. Maybe there is some expectation that some other development will occur after the shareholders meeting and November 15.
A takeover does not work like that. An acquirer has to report holdings when it hits 5% and declare intentions at 10%. The price would go through the roof if Noble declared its intentions to do a takeover.
I cannot believe that he did not know how that news/rumor would impact the share price. This is penny stock land. As is generally known by those familiar with this market is that the announcement of an RS will negatively and heavily impact the pps. This is because an RS is almost always done by failing companies in an attempt to artificially and temporarily boost the share price. Institutions know this as well; so I don't see how they would all of a sudden bite at a temporarily higher price.
It is possible for a company to avoid the loss of market cap that an RS normally causes, but only if there is another shoe that drops at the same time. In IFNY's case, the announcement of a firm drilling schedule or some sort of substantial additional financing commitment that required the RS, something big to counteract the downward pressure on the pps. Without that other shoe, an RS makes no sense whatsoever. None.
To me the 9.9% cap is the most alarming thing about this deal. It means that as the "investor" receives shares they will have to sell to stay below 10%. That is typical used in a PIPES deal, which is what makes me very leery.
That kind of cap is clearly intended to keep the "investor" from being deemed by law to be an insider. Insiders (officers and directors and 10% shareholders) have to report their trades on Form 4. So the "investor" wants to keep its trades off the radar.
We could probably drill at least two holes with the $10 million; which is what I would do if I were in Stan's position.
Even after they hit oil, you will still be saying they don't have the financial or technical capacity to drill the concession.
Give it a rest. Your failed "expert" pronouncements have completely destroyed your credibility.
They don't need one to drill. They can hire a rig and drill themselves, which is obviously what they plan to do.
Very very very doubtful. I can't see how they could possibly get anything approaching a decent offer until a successful well is drilled and they are able to de-risk the play. No, we are going to drill. That is what this financing is all about.
That's just dumb.
The money is to drill wells, probably 2, maybe 3.
The concession is in very shallow water. Jack up rigs are available now and on the cheap.
The 9.99% limitation is to keep the investor from becoming an insider who must report his trades like an officer or director.
Shoe, some investors who are in the know (one way or the other) do not want to trade because they know it is illegal. Others who are in the know and who do risk trading on inside info are smart enough to do it in a way that does not materially affect the pps because they don't want to trip a market surveillance computer program at the SEC. Imagine if someone waded in and bought a couple hundred thousand shares and less than 30 days later news was announced and the pps ran big up or down; those big pre-news trades will be reviewed.
Yes, external events can cause things to not go as planned. But, when a company appears to regularly be at the mercy of external events, then the company has a serious leadership problem.
shoe, you mis-read my post. I was simply asking someone who obviously is pretending to know things he doesn't to stop.
Nothing to do with whether IFNY will make it or not.