Prairie Provident Resources Inc T.PPR

Not Many Positives...

[SilverSam]

Today's financil results didn't give a lot to smie about, other than the reduction of debt to around $60 million cdn.

[filefish]

Every penny they generate is now going to debt reduction. aro abatement or working capital maintenance.  Its pretty clear that they need to merge the Company in the next 3 months or there will be no value left for shareholders. Its unfortunate that some of us are suffering to the bitter end. Let's see if the Board can miraculously create some value.

[matt2018]

maybe you are on to something here. They could be setting up the company for a merger and are selling assets to bring down debt rather than try to grow production which has long break even time period. The debt reduction is a positve to the balance sheet immediately.  More attractive to a potential suitor to chip away at that debt. They also have quite the sizeable amount of tax pools

[filefish]

Matt, hopefully they have a plan for a merger, as you are suggesting. The qualified opinion by the auditors and the last minute filing of reports on SEDAR do not instill confidence with investors. I am surprised that the stock is holding up as well as it is so far. I dont know about the transferability of tax pools, of which they have at least $800 mil. PPR made this a selling point in a previous

[matt2018]

Not sure on the rules of an outright sale of the company affects those tax pools but merging it with another Jr company where its appr a 50/50 arrangement could be different.  You may be allowewd to take them with you.  Sure that will be clarified in time. Also, the fact most days there is very little volume for a stock with such a massive share float shows the large shareholders are

[SilverSam]

I do not believe that the majority shareholder has any intention of letting this company go under.    They will either strike a deal for a sale or merger, or they will re-finance it themselves, with the dilution being absorbed for the most part by the common shareholder - i.e. you and me.

[filefish]

SilverSam, if PCEP were to refinance PPR -  you are right -  they will not do it at a premium to the shares market price like they did last time. ( .14 vs .09 ) 

[SilverSam]

If it comes down to a matter of keeping the company afloat, I would expect another round of severe dilution, much more than at current market values.

[SilverSam]

And if the company is not able to refinance before the arrival of summer, PCEP, as the majority shareholder, could simply declare that they will buy out the remaining shareholders and take the company private.  Fair value, in this case, could also be considered much lower than current market value, since the alternative would be a firesale of the company.

[filefish]

My guess is that they will probably have a plan in place to announce before or during the shareholder meeting on May 15. Between now and then, keep an eye on the share price for any indication.

[SilverSam]

Let's hope so!