AREX – heavily shorted, earnings are coming (is anyone with a little Martha Stewart info leak around?), dilutive filings:
FORT WORTH, Texas, Jan. 30, 2017 (GLOBE NEWSWIRE) — Approach Resources Inc. (AREX) (“Approach” or the “Company”) today announced the commencement of an offer (“Exchange Offer”) to exchange newly issued shares of its common stock, par value $0.01 per share (“Common Stock”) for $99,768,000 of outstanding 7.00% senior notes due 2021 (“Senior Notes”).
Subject to the terms and conditions of the Exchange Offer, each holder of Senior Notes (each, a “Holder” and collectively, the “Holders”) may tender all or a portion of such Holder’s Senior Notes, in exchange for 276 shares of Common Stock per $1,000 principal amount of Senior Notes (the “Exchange Ratio”). Assuming all currently outstanding Senior Notes are tendered for exchange and not validly withdrawn, the Company would issue 27,535,968 shares of Common Stock, or 25% of outstanding shares of Common Stock, assuming (and giving pro forma effect to) 100% participation in the Exchange Offer. Holders that tender their Senior Notes that are accepted for exchange will receive accrued and unpaid interest on such Senior Notes up to, but not including, the settlement date for the Exchange Offer.
Whole sector is down… Would you like to take a trading risk purely based on technical indicators? I will:
Approach Resources (AREX)
Trade on your own risk, don’t put entire lifesavings into this risky idea…