High Arctic Energy Services Inc T.HWO

Buying into what we already own....

[auburn2]

One man's perspective, from Investor Village:

"The reason they are doing this is so that majority of retail shareholders will not want to pony up the extra money for the PNG business.... It's as simple as that. They don't need the money as they already have too much. But they came up with a scheme to end up owning as much of the PNG business for themselves. They didn't have to do any of this at all. They could have just bought back some shares and pushed up the shares to $4 and then paid out massive dividends.
 
I guess if you play along with them (many won't) you will come out ahead.  But it is private.  And they will have tons of cash they won't even know what to do with.  Massive dividends?  Then sell the company?  I have no idea, but they will probably look for an exit somehow in the next 2 to 3 years. But you also always have the risk of them milking some of those $$ for themselves via excessively high salaries/bonuses.  If they are private, what say do you have?
 
The PNG business is probably worth multiples the current stock price right now in 2 years.  And they know it.  This is the reason why they want existing shareholders to "buy into it"  and many wont.... I mean WTF.  They already owned it LOL....  It's pretty obvious what they are trying to do..  "

[longrun86]

I'm still going to wait to see what the formal proposal looks like before I figure out what to do. I reached out to the Company to ask them what the governance process looks like for this and if they have formed an Independant committee and engaged an external party to perform a fairness opinion. My view is that the Independant Committee should also seek Independant legal advice to ensure

[auburn2]

Also would be nice to know why exactly Lance resigned. You'd think a CFO would best know the situation, and yet he sold his shares at $1.27.

[colourama]

I am skeptical anything will be done to protect minority shareholders. If the exercise price is, say, near PNG book value $1 - 1.25, then we will need to add additional cash to maintain our share count in the private co. Otherwise in effect we are letting PNG go for book value to Cyrus + management. I guess technically receiving book value for the company is "unlocking shareholder value"

[auburn2]

Also would like more clarity on how the private shares will work. They'll be sitting our brokerage accounts paying us dividends until the private co is acquired for cash or shares in something else, which could be many  years down the line if at all? I'm concerned it's troublesome for an unsophsiticated retail shareholder like me. I do know private shares in a PNG company

[auburn2]

"I imagine many other shareholders are like me - relatively unsophisticated and very apprehensive about private shares."

[Northforce13]

"I reached out to the Company to ask them what the governance process looks like for this and if they have formed an Independant committee" "independant committee" concept: When management is engaging in a questionable transaction, they appoint an "independant committee" (appointed and chosen by them...think about that).  The "independant committee"