Bullboard - Stock Discussion Forum Athabasca Oil Corp T.ATH

Alternate Symbol(s): ATHOF

Energy Oil & Gas E&P

Athabasca Oil Corporation (AOC) is a Canadian energy company with a focused strategy on the development of thermal and light oil assets. AOC’s segments include Light Oil and Thermal Oil. The Thermal Oil segment includes the Company’s assets, liabilities and operating results for the exploration, development and production of bitumen from sand and carbonate rock formations located in the... see more

Add To Watchlist

TSX:ATH - Post Discussion

Athabasca Oil Corp > Share offering

View:

Post by Bananahanger on Jul 29, 2021 2:27pm

Share offering

I have to agree with BJ. You own a 450 million dollar company with a 450 million dollar debt. What is that worth? If you float shares and pay off the debt you are adding 450 million value to the company. If you eat the cake with a 450 million dollar debt you will get a call from the bank. Your post says if you increase the shares you are eating the same cake. It is not the same cake at all. I think it would make sense to float a couple of hundred million and reduce the debt to a manageable level, if they could find someone to invest. Can a company hold a special meeting and not wait for the AGM? Anyway, it will be extremely interesting to hear what Nuttall has to say tomorrow.

242

Comment

Comment by BLACKJACK86 on Jul 29, 2021 3:12pm

Bananahanger, congrats, you figured it . Trying to make this easier, lets take the cake example. you are 6 eating a cake, but 40 percent of that cake you cannot eat because it belong to somebody else(bondholder), so you're just eating 60 percent . you get 4 people to buy the part of the bondholder ( that you cannot eat anyway) you still get to keep your share (60 percent) and those 4 ...more

112

Comment

Comment by Chris007 on Jul 29, 2021 3:21pm

There certainly is a difference between debt and equity... Equity is a stake/ownership of the company (basically a permanent arrangement)...you are essentially selling a portion of the company Debt is borrowed money, that is eventually repaid (principal), along with periodic interest payments. Debt holders are entitled to their money back and interest, but they have no ownership stake If you ...more

Comment

Comment by Nothingmatters on Jul 29, 2021 3:53pm

Either the guy is stupid or acting stupid. May be a shorter..

101

Comment

Comment by BLACKJACK86 on Jul 29, 2021 4:49pm

Chris , it doesnt matter debt or equity , if you're personal holding is 100 thousand share at 80 cents and they swap debt for share tonight at 80 cents , your share will still be worth 80 thousand dollars tomorrow , the VALUE of your investment will stay the same. Metrics like EPS and other will be different, but not the value of your holding. percentage wise, you will have less ,but ...more

Comment