So here is perhaps a simple sense of my understanding of TeleProbe's post.
Lets say FNC waited until the sp was 20% higher before the offering. They would either: go for the same cash amount and reduce dilution effect by about 5% (25% dilution x 20%); or the cash value of the pp would increase by 20% ($1.5M or so) and dilution would be the same as it is under the current pp.
The dilution was going to happen cause funds are needed right. The impact is not all of the dilution just that percentage between where our sp is now and where we think it could be based on the what, where and when we think something big is going to happen that improves the sp (these are forward statements that need risk disclaimers attached). Nothing CHM is doing to date has had any positive impact on us, why would we expect it to next time? The world markets remain a mess into the forseeable future I'm guessing. Magpie needs funding to structure the offering, CHM needs it 17% funding soon, and well there is McFaulds and Beauce to work I would like to see giddy up.
So imo, this is not the whole hundred % dilution horrible, just a part of it is bad. If we want to mean mouth mgmt on that part; best we include timelines, probabilies, risk assessments and NPVs into the calcultions because in a risky speculative game like this, including these reduce that bad part of the dilution even furher.
I wish they had waited a bit, but I am only partially pissed by it.
