The original deal $35,000,000 Cash 50 million shares representing 25.6% of the company, HWX price today 4.56 = $225,000,000 15 million warrants with $2.00 exercise 4.56 - 2.00 = 38,400,000 if exercised and sold into the market. New deal with Topaz $102,000,000 35,000,000 + 225,000,000 + 38,400,000 =$298,400,000 + 102,000,000
= 400,400,000
Seems pretty good for 2,800 flowing barrels.
People do get concerned about the asset sales reducing cash flow, but CVE has demonstrated that they are willing to take their time to get a good deal for the non core assets. I am looking forward to them trimming the non core, cleaning up the balance sheet and having them focus on what they know well.