Petaquilla Minerals Ltd PTQMF

What Were They Thinking?

[wwadehammer]

On April 6, 2011, PTQ announced its intent to acquire Iberian Resources (Lom Poy) by issuing 40 million shares of PTQ to Iberian.  This placed a value of approximately  $49 million on Iberian as PTQ's SP was $1.15  at the time (down from a high of $1.35 in March 2011 which I assume is when negotiation for the acquistion took place).  In its press release,  PTQ announced that the $49 million valuation was a the low end of the scale based on the estimates of our famous 43-101 preparers (DB).   The acquistion of Iberian occurred after stockholder approval on September 1, 2011 with the PTQ SP being 80 cents which valued Iberian at $32 million.  This is $17 million (35%) less than the $49 million Iberian value negotiated.  Now if I were one of the Iberian share holders, since I was selling Iberian at the low end of the scale, I would have demanded that the amount of PTQ stock received be based on the PTQ SP at the time of acquistion.  The fact that they didn't do this indicates that they were very stupid and Fifer cleaned their clocks or that they didn't believe the resources were worth $49 million and gladly accepted the $32 million.  Wonder if Iberian shareholders dumped their PTQ stock as quick as was allowable under the acquistion deal or hung onto it.  If they unloaded it, they probably made some money.  If they hung on to it, the current valuation for the 40 million PTQ shares is $13.6 million which is a 73 percent loss from the date of acquistion agreement (all PTQ share holders have lost 73 percent from April 6, 2011 to now).   What a disaster this deal has been.