Charisma Energy Services announced on 7th August that it has partnered with the Alaska Industrial Development and Export Authority (AIDEA) and secured a 7 year oil processing facility charter contract with a value of approximately USD 276 million.
This is great news for shareholders! It is exactly what the management promised during its AGM in April.
However, the price actually shot up to 4.5/4.6, before languishing back at 4.2/4.3 today. So what is going on?
Well I'm not really sure I can explain any of it, but what I do think is that its share price is being depressed by the existing Charisma warrants still floating out there awaiting to be exercised. This has adversely affected its share price before, and looks like it will continue to act as an overhang, preventing it from moving up further in spite of the large contract wins that we foresee coming. This comes in the form of a previous announcement 1,000,000,000 warrants currently floated that are expiring in 2016 that have a strike price of 0.025.
Hopefully we will see alot more contracts coming in soon.
HUAT AH!
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