Big Banc Split Corp T.BNK

If approved by the CHINESE GOV then the deal doesnt close

[Rodentrunner]

Until end of September, which could be extended again until XMAS, and by then all of the could of had profits by investing else where should amount to a loss in this case!! good luck with that :)

[mohsin6]

There is a very big risk if GEO does not wish to extend the contract by July31. 

[goldminertoo]

There is 1% chance of GEO pulling out and about the same for the aproval ( SAFE) at some point or in the near future to be aproved!    Not sure what your angle is .... you need to read and not try to read anything more then what is said in the release

[mohsin6]

where do you get 1%. Unbelievable garbage.  Simply saying they have that ability to walk out of the deal without much penalties as the period of dates are set to expire.  It is not like SAFE at all.  SAFE is a matter of submission for approval of exchange currency for monies to be withdrawn from the country at one time. more about macro economics.  "My angle"  go

[goldminertoo]

and 20 million is nothing?  We all know that 1% is just a figurative way of saying minimal chance ... you need to learn how to read and chill out

[Toast2change]

Exactly why you can sell your position to me at 90% of its value and I will take it and wait out the paperwork for a 10% return. Thanks

[mohsin6]

the price is where it is becuase of the risk involved.  i sold mine for now. not worth the risk..may buy after the deal is extended but SAFE still wouldnt have approved of it any ways..for a little less return its worth the risk/return profile.  keep it and remember it is where it is for a reason. 

[ChupacabraBueno]

I'd like to hear more of your risk assessment mohsin. If rodentrunner is correct, that the buyer is still on the hook for 20mil, even should the deal fail, BNK shareholders would be up 8/share cash and have the full benefit of higher oil reflected in the SP. So how much downside is there really?

[goldminertoo]

Exactly.... not only that the deal was consumated at $34USD... yes the canadian dollar has gone up versus USD by 10% in that time frame however the price of oil has gone up 30%... all of that does not really matter because its all about Albainia and the futrure for the Chineese not about today or tomorrow or the fluctuations in heavy / light crude or currencies...

[mohsin6]

all good points.  from my understanding with IR deal is off the table once expiry of agreement date which is July 31st.  If SAFE is not done before July 31st (which I doubt) , then the deal of the arrangement is contingent and they are on the hook for 20mil.  This is way they are pursuing to extend the arrangement of agreement of the contract and hope if works for all.   

[mohsin6]

allow me to rephrase as it was ambiguous.  The arrangement of the deal was set for July 31 if all arrangement including SAFE were completed.  In light of SAFE most probably will not be done, then either party has to option to change or alter or come out of the arrangement. They are actively trying to pursue Geo to extend the arrangement as they know SAFE will not be done on time.  

[uograd]

Look the chinese are no more interested in losing $20,000,000 for nothing than anyone else so the easiest way around that is to grant an extension. However, there will be a cost to grant that extension which will move the closing price up by $20,000,000 which is roughly 8 cents per share. So the terms of the deal are now pay me $2.20 today or $2.30 in 60-90 days.  I could live with either.

[riverrow]

If they have to pay $20 mil more for the company than they're just as far ahead to walk away from the deal. Maybe 4 or 5 cents more. The big holders would be pretty happy with that.