Bonavista Energy Corp T.BNP

Some Metrics on the recapitalization

[Hendrick3]

The banks are trading in almost $500 million in debt for owning 93% of the shares which translates to 13 cents per share in today's terms. G2S2 are offering 5 cents to buy your shares and the shares closed at 11 cents. Based on the metrics G2 should never see their proposal approved. The banks paid 250% more and I would imagine they expect to make money on their investment especially given that the debt is now in line with other financial metrics. 13 cents should be the low. 

I may be wrong on this but I thought insider share purchases had to have an independent fair value opinion to support the purchase price on a bid like this. If the banks paid almost $500 million for 93 % then the minority shareholders should expect to receive the same. Any other valuation based on reserves etc would likely yield an even higher number. I took a small position at 11 cents yesterday and will be monitoring these developments but don't be fooled by the stink bid from G2 as being some sort of Expected Value for the stock.