RE:CGX-FRONTERA - LETTER AGREEMENTWhile perhaps unlikely - what if CGX was able to obtain a superior offer from another third party at this time? What if the third party (for example) offered CGX US $100M cash for 40% interest in both Demerara and Corentyne?
Note the clause below that was taken from CGX's financial statements published Nov. 19, 2018 (page 23).
During the year ended December 31, 2017, the Company entered into an exclusivity agreement with Frontera, whereby the Company will negotiate in good faith exclusively with Frontera in respect of completing either a restructuring transaction and/or financing transaction until December 31, 2018 (“Exclusivity Period”). If during the Exclusivity Period or during the six months following the end of the Exclusivity Period the Company enters into an alternative transaction, Frontera will be given 5 days to match any alternative transaction. In the event that Frontera does not match the alternative transaction, the Company will pay to Frontera a $5,000,000 work fee, in consideration for the substantial time, effort and expenses that Frontera has undertaken and will undertake in connection with the pursuit of a proposed transaction. As no transaction has occurred as at September 30, 2018, no amount has been recorded in these financial statements related to this contingent payment.