gcarpen asks: Any thoughts on the financing news? Why abandon the organic growth model?
I'm not sure why they're abandonning the organic growth model, but their prior announcement, in Apr 2011, about the JV talks with China Gold, shows that they've been looking at alternative models for a while now.
I have a wild guess that the meaning of the recent financing announcements is that Banro wanted cash or indirect assistance to help accelerate the development of Namoya, but that China Gold pushed too hard in the negotiations, and Banro decided that it can do better raising cash in the open market than on whatever terms China Gold was offering. Or to put it another way, Banro has in effect said to China Gold, if you're interested in a stake in our projects, fine, here are our terms -- you can subscribe for as many debt/warrant units as you like -- and if you don't think our terms are fair & reasonable then there's enough other investors out there who will thnk that this is a good offer.
And, IMHO Banro's terms are very reasonable -- if an investor feels that there's a reasonable chance that, in 5 years, BAA's share price might exceed , say, $16.65 per share, then every unit that you buy today will eventually earn you 10% per annum coupon interest, plus a 48% return because of the warrants. Sounds like a good deal to me.