RE: Shorting16 Jun 2018 15:30
I've always been critical of some of the financial decisions taken by HNR over the past year or two. People have said RP has excellent financal backgrounds etc but imo while he's run a fantastically successfull O&G exploration and production company (no easy task), the financial decions have let him down - of course this is just me looking in from the outside. Specifically the PB 12p placing and the 30p placing to a single investor. My view is these have consistently dragged down the share price. Forward selling of any sort should arguably be banned and is a terrible practice for shareholders. I've had scenerios similar to Jof's suggested to me and while it can never be proven its interesting to consider and one you either believe or dont. The proof will be post end of July when the warrants expire.
Thats my rant over. The good news is, and as other have mentioned, we shouldn't be going anyway near that garbage financing in the near or long term future. We are transitioning into an established O&G company with industry partners, experience, expertise and proof of delivery. If financing is required I see that being acieved through third party partners, a banking mechanism, or potentially an issue of shares - but to a reputable institutional investor. Sprott at MTR for example, numerous as SDX.
Its been a huge learning curve for me, and was one of my first small cap investments. But the above financial perspective, the fundamental perspective I havent gone into here, plus the macro perspective in the O&G industry supports why this is my largest holding. Happy to wait for all of the above value to kick in unconstrained. ATB
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