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Boston Omaha announced a $150mm private placement to Magnolia Group and Boulderado Group at $23.30 per share late last night. Why would Rozek and Peterson do this at that price? One would think they could
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<p>Boston Omaha announced a $150mm private placement to Magnolia Group and Boulderado Group at $23.30 per share late last night. Why would Rozek and Peterson do this at that price? One would think they could have bought this stock at a far cheaper price considering they are issuing nearly 50% of the current shares outstanding. </p>
<p>Any thoughts on the rationale? Maybe they saw the stock reaction in December post the WSJ article and thought this would a great way to issue the $50mm shares (via the ATM) at a large premium? $150mm is just a lot of money especially when they previously issued stock at only $13 8 months ago. They couldn't possibly think the business has increased in value that much when they had only spent a fraction of the initial proceeds. </p>
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