RE:RE:RE:RE:Voting For or AgainstI think my ACB is around $1.07, and I purchased after the deal was announced. Certainly still possible to make money here. And if oil prices continue to regress, I'd argue we are in a worse place if the deal is rejected as you have no cash, and exposure to both Sawn Lake and the indonesia/thailand assets.
On the issue of dilution, yes they will need to raise, but i'd argue their proposed share structure is actually pretty decent for that. At 49 million shares for CanAsia, there's room to issue shares, and if structured properly, the dilution might not decrease the share price. A rights offering could also be explored to raise capital non-dilutively for existing shareholders.
As for the stub leading to massive dumping, I doubt it, as there's been lots of opportunity for the shares to trade down, and we've actually seen a bump in the share price, since the deal was announced. People who want out have opportunities now to get out, and haven't taken it. As I said, these are the kind of plays I look for, and generally the sum of the parts is worth more than the whole.
If oil prices continue to decline, I'd argue that the deal gets more favourable, not less. Cash in hand versus long exposure would generally be preferred in a depressed oil price landscape.
GLTA