Cardinal Energy Ltd (Alberta) T.CJ

Smart Management

[traderlong2]

I said a year ago I was in this company because I thought the management was sharp
great move on the Debenture
about to remove another 28 million in long term debt add the 50 million off the CL this year
then I think we will see the divy returned to shareholders
The 26 percent insiders also want that divy
we could break 1.50 today imo
we will see
now going to save 4.4 mil interest on the deb
and oil at 56 is an extra 13 mil in cash from the latest presentation
well done
glta

[Oil2018]

Thanks for the information. How do we pick the option of taking shares? I bought this at 6. Need all the shares I can get to average down

[traderlong2]

You Just tell your broker you want to convert before march 9th they will trade to shares in your account I say if the sp is above 1.40 100 percent convert you would be crazy not to take the premium Great buy at 60 congrats

[Primetime1]

I am a bit surprised by this move, and not sure I am entirely clear on the rationale for it.  1. From a debt perspective, aren’t they just issuing other debt (new notes) to pay for the redemption of the debentures? At similar or higher interest rates?  2. From an equity perspective, debentureholders can still convert to shares (so they might prevent some future dilution by redeeming the

[traderlong2]

Imho When the share price broke 1.25 they called it they will put up the cash if the debenture holders wont convert 8% is a good return on cash for the insiders they also eliminate any future conversion that might hold the SP in check Feels a little greedy to push that quick the deb holders who in fairness argeed to extend while the other cowboys did not and they got 12% return ( nice thanks

[Primetime1]

OK so assuming a large number of people do convert, then it will reduce the debt a lot earlier vs. the company waiting 2 years. I think that makes sense. Thanks 

[2020oilgamble]

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[traderlong2]

Agree! all to make the company cleaner for a sale ? my guess is we will also get some good news in the next 3 or 4 weeks to make sure I think they would be smart enough to ensure the removal of the debt or thy would not of pulled the trigger so fast glta

[Backinblack1000]

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[2020oilgamble]

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[sclarda]

Primetime1 wrote I am a bit surprised by this move, and not sure I am entirely clear on the rationale for it.  1. From a debt perspective, aren’t they just issuing other debt (new notes) to pay for the redemption of the debentures? At similar or higher interest rates?  2. From an equity perspective, debentureholders can still convert to shares (so they might prevent some future

[Backinblack1000]

This post has been removed in accordance with Community Policy

[giovinco]

Rational is to get rid of the 1.25 option to convert snce price crossed the mark. Not sure if it was good timing since stock price was taking off. It is same as equity raising at 1.25. All will convert as long as market price is above 1.25 and some will sell right away causing share price to be stuck for a short term. i.e. short the stock now and then convert at 1.25 or sell what they have already

[sclarda]

giovinco Rational is to get rid of the 1.25 option to convert snce price crossed the mark. Not sure if it was good timing since stock price was taking off. It is same as equity raising at 1.25. All will convert as long as market price is above 1.25 and some will sell right away causing share price to be stuck for a short term. i.e. short the stock now and then convert at 1.25 or sell what they

[giovinco]

Exactly same as equity raise if you use up all the cash to repay debt. Anyway, 100% will convert if share price stays above 1.25. You either get $1,000 or 800 shares to sell in the market. Selling 800 shares at 1.26 will give you 1,008. Who would not convert? Short sellers could try to dip it below 1.25 in order to make company hold more debt, and those who are long will buy below 1.25 with

[jwrent]

I am not so smart, still averaging down...big time. Even Murray can not drag me out from the depths...we will see, hangin in there.