BONTAN CORP INC BNTNF

Why I Have Decided To Keep Half My Position

[ajootian]

A few years ago the CC guys took a burnt-out shell of a company called DealCheck, raised about $3 M, changed the name to Bontan Corporation, and set out to do some deals in the natural resource space. Their first deal, a Brazilian diamond venture, failed before it even got to square 1, and they blew about half a million US big ones on that. Their next deal, the Interoil deal, ended up to be not what they thought they were getting into when they bought in (i.e. much slower drilling pace, dry holes, etc.), yet with some fancy footwork were able to effectively double their money on that investment. Their next deal, a drilling play in Southern Louisiana, ultimately turned out to be a dry hole. The key point to keep in mind of all of the above, is that with just around $2.5 M (i.e. the initial equity raise less the money lost on the initial diamond play) they were able to at one point get their stock to a market cap of well north of $20 M. So now we see they are back to square one, a burnt-out shell. But it has $2 M in the checking account, not all that much less than what they had when they started this game (net of the diamond play loss). So, who's to say these guys won't be able to pull another rabbit out of their hat???