Arcan Resources Ltd ARNBF

Don't know who to Believe anymore

[hardeehar]

If this so-called 'strategic restructuring' makes sense, then why has Arcan's SP fallen 50% since the announcement.  Then there's the CEO of Aspenleaf of the belief that:

' Without the deal, Arcan will enter into a downward spiral of diminished opportunity because it lacks access to capital to pursue its drilling program and has high fixed costs. He believes there is real upside to the company by employing waterflood techniques to boost production, which is light oil. Yet without access to capital, it won't be possible. And that's why the idea to restructure Arcan, by redeeming the debentures, paying down the bank debt and taking it private makes sense.'

So it appears that Arcan and Aspenleaf are the only ones pushing the deal,  while other major shareholders such as LTS are not going to endorse it or have so far remained silent ( ie. CPG).

One thing is fairly evident and that is Arcan is up to their old tricks of saying one thing and doing another.  As Rad10 mentioned, Arcan was boasting about the high IP rates from last winter's drill program and because of that were planning to drill at least 10 more wells this season and all of a sudden they decide to bail with this takeover announcement??

 It all stinks!

[ltrabs]

  I was wondering what happens in Asperleaf if the deal falls through.  How will the pays salaries, bonuses .  etc. Do they have any revenue ? Or are they counting on getting their hands on the Arcan cash flow?    Going foreward, Maybe it’s not the end of the world to cut back on cap-x and loose a few employees.   Seems to me, Q1 would have been a lot better without