Eco Atlantic Share PriceEco-Atlantic share price up 10% today and approaching CAD $1 - that's a market cap of CAD $148M.
We have seen multiple third party evalautions for Eco Atlantic over the past month - multiple investment banks believe Eco's 15% interest in Orinduik is (risked upside) is worth more than US $200M.
CGX holds 66% interest in 2 offshore blocks (which are also adjacent to Exxon's Stabroek block and recent discoveries) - though, trades at a $45M market-cap. Hmm.
As some have already commented - the upcoming equity raise for US $20M and settlement of the US $9M bridge loan has perhaps created some concern within the investment community. A lot of money remains on the sidelines until the details are fully revealed.
At this time, I would expect CGX directors to negotiate a fair and reasonable deal. One of which comprises a fair and reasonable evalaution of CGX assets and associated liabilities - does not give away the farm for pennies on the dollar.
Recall, for those of you that held CGX stock in 2013 - there was a time when Pacific Rubiales amended their offerng terms and lowered their offering price from from $0.14/share (250M shares) to .10/share (350M shares) - for proceeds of $25M. This was all predicated based on the unfavorable news of the Eagle well being non-commerical and the early abandonment of Jaguar.
Now, ehen the tide turns and the market signals a higher evaluation for the company - (whether is a climbing share price or higher valuation for company holding similar assets) - I would expect CGX directors to negotiate a higher offering price. It should work both ways.
If this is an indegenous managed company - then management needs to protect its indegenous local shareholders. This seems to be the case - but, we have to wait and see what the actual details are.