Oilsands Quest (BQI) update #3
Posted by intelledgement on Wed, 05 Dec 07
Management announced earlier this morning that the financing deal has closed as planned. The company realized US$67.7MM from the deal. “The Company intends to use the proceeds of the offering of Units for reservoir testing and other costs associated with the Axe Lake Discovery and for general corporate purposes,” according to the press release.
With the share price threatening to sink below $4, it is encouraging that the underwriters are confident they can move 11MM shares prices at $5. (Of course the purchasers have the incentive of a warrant for every two shares they buy now that gives them the option to buy another share at $6.75 anytime in the next two years.)
No word on the disposition of the overallotment shares. If those sold too, that would be another good sign. However, if the USA rolls into recession, the price of oil—and the perceived outlook for oilsands developers—are likely to suffer, near term, irrespective of the long term considerations of true believers such as ourselves. LOL speculation…gotta love it.