Granite Oil Corp GXOCF

Agreement

[HIT2020]

Well, who to trust IMO.

The Corporation values itself at $7.10 per share as offered June 08, 2016, then accepts $.52 per share December 21, 2018. Consultants used for valuations appear to have missed the mark when providing valuation information back in 2016 and now we are once again subject to consultants providing valuation information to support the currently agreed to $.95 per share.

Management are working with infrastructure in place and managed to start paying down debt and it looks like finish the last fiscal year off with net income. Yet, support the sale of the Corporation at a price which I expect will produce actual losses for a few shareholders instead of continuing for the longer term as was the business plan. Management has shown a willingness to selectively issue shares but not to buy back shares. Management has also supported foregoing production which appears to have resulted in reduced net income levels and lower valuations negatively impacting such measures at price/earnings and possibly contributing to a lower share price then would have been otherwise.

Based on available information it appears to me that the agreement price of $.95 is only $.03/share higher than the approximate latest 5 year average net income of $.92/share. So, based on the approximate 5 year average net income shareholders are being offered a purchase price at a P/E ratio of approximately 1.03. Shareholders are being asked to support the sale based on the most current valuation and not the last 5 year average. If the last 5 year average was used as "fair" and a P/E of 15 as "fair" then we should be looking at an offer more in the line of $13.80/share.

Is reducing debt by $5 million a year fair? If so, $.95 seems to be a low offer.

Shareholders have options. Agree (For), Disagree (Against), Other (Dissent).

If a shareholder agrees they realise any gain they have from a purchase price under $.95/share or a loss for the difference on any share purchased for more than $.95.

If a shareholder disagrees and the Corporation does not sell then they do not immediate realise a gain or loss and believe there is a good chance the Corporation Value will improve from the current agreement value of $.95/share even if it means a reduced share price back to the pre-offer level in the shorter term 1-24 months.

If a shareholder dissents then they are subject to "fair valuation" and likely to significant legal and other challenges in achieving what they understand is a "fair value". The shareholder also loses the right to vote and thus reduces the number of votable shares overall (increasing the percentage of shares already (For)). Appears to be somewhat of a smokescreen option.

It appears the other part of DeeThree (Boulder) took the same path earlier.

My position hasn't changed and now I will cast my votes.

Regards,

[TheBridge]

Truly appreciate your post with all the figures and thoughts. Unfortunately I have experienced all 3 companies: Three Dee, Boulder and Granite and will post my personal thoughts. In my opiniion, investors should keep track of Kubanik and the names of these members of this board. In my opiniion again, stay far away from any endeavor that they might be involved in the future. There's no more

[MonstersInc2]

Thank you for sharing the information. Voted against. I guess we got screwed up big time. Management team eventually leave us with our blood earned money without any punishment.

[artyfoo]

160,490 vote against here.

[artyfoo]

The voting instructions were sent on February 20th (Thursday).  I got them at the post office early this week. Now, looking at this today, every shareholder has a right to dissent but must send written objection to the arrangement by March 2nd.  So we have less than a week to send a written objection and exercise our right to dissent to the sale at that price?  Section 191