RE: Icemax schedule confirmed14 Dec 2020 18:02
“What I cant get my head round is - why would Potter ask for £20 m and offer hundreds of millions of shares at 2p instead of waiting for 4 weeks when the SP would have maybe been about 6p”
Well it’s about sharing risk to the upside. Malcy summed it up quite well here. For once I agree. As I posted before not surprised...
But then I bought while others were selling and now have a decent trading pot to offload in the 3’s.....
Malcy
“Bahamas Petroleum
The company announces Funding Agreements with a ‘leading European alternative asset manager’ for up to $20m of which $10m will be drawn immediately at 2p per share. There is also an option to raise another $5m within ten days after the spud of the Perseverance#1 well, if BPC so elects, the Investor has the option to double that amount, thereby providing BPC discretionary access to the full £15 million.
This Funding Arrangement provides ‘a superior source of immediate funding especially as compared to the Company’s previously announced Zero-coupon Facility. Moreover, the Funding Agreement requires the issuance of direct equity (rather than convertible notes) at a fixed price (rather than at a future indeterminate price) and thus represents a known level of dilution (as compared to an unknown level of potential future dilution). BPC has stated on a number of occasions it would seek to optimise its funding strategy such that it would have no need to draw on the Zero-coupon Facility in the future, and with the proceeds from the Funding Agreement, the Company can now categorically commit to not drawing any further on the Zero-coupon Facility’.
Trek
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