Stans Energy Corp V.HRE.H

RE:RE:RE:RE:RE:Kyrgyz Republic Moves to Set Aside Stans UNCITRAL

[PenniStocker]

Award value (US$210mm or C$280mm) is ~C$1.60/share (with no markup for legal or additional interest, etc., which gets us to US$219mm), so let's assume the lawyers take 25% as a fee to keep the math simple. That means ~C$1.20/share in net award. KRI traded around 20% of their value before ramping up over the last year of the trial to about 50% just prior to announcement. The rest is history - they won and most funds were paid out to shareholders.

At 20%, an award of $1.20/share implies 24c per share versus the 5c (4% of net award). And it's not like HRE is defending itself, Calunius Litigation is executing and paying for this lawsuit. They're a world class fund that does this stuff for a living and know how to play these games. It's also why when they took over the case they didn't care about losing little cases and went to the UN. This is going to work out well or Calumius would have walked away already as they've got US$4mm invested in this already. 

The Russia DD work is pretty cheap, just time consuming, so not too worried about excessive shareholder dilution as they are only raising what they need to do the work to get thru to a binding MOU. When that happens, Russia and America will chummy, sanctions will lift, and Asian groups will come to STANS looking for lithium.