Just got a callback from the big cheese at the lead syndicate.
The first thing he told me is that it hasn't closed yet.
I tried to squeeze him for the amount of money raised. His first response was that he's not giving out that information because, for all he knows, I could be an old bondholder. So, all this selling today is based on no information.
Then I asked him what happens if the full $120 million isn't raised. He replied, it doesn't have to be that figure but the new investors have to be satisfied that enough capital will be raised to pay off the bondholders and finance the next three years of existence, lest Bob runs out and engineers another PP which will dilute their position. ( His reputation precedes him.)
Then I said that this was suppose to close in late October and is still open two months later. Shouldn't that be telling me something?
His response, not necessarily. This is an unique offering-how many times have we heard that-and nobody really knows how much money has been raised until we call in all the chits.
He said that process will start tomorow.
He also hinted to my direct question that the delay could be attributed, in part, to the new investors dickering for a higher percentage.
He told me to hold tight and would get back to me tomorrow with possibly a better handle of where things stand.
