Long CGXSo first you have to buy the rights to buy the shares. From the rights offering press release: "The Rights Offering will expire at 5:00 p.m. (Eastern Time) on October 28, 2021 (the "Expiry Time"), after which time unexercised Rights will be void and of no value."
Then further on in the release we have this: "Frontera will agree to exercise Rights to maintain its current percentage of issued and outstanding CGX Common Shares and will also provide a standby commitment pursuant to which it will agree to acquire any Common Shares available as a result of any unexercised Rights under the Rights Offering."
Then further on we have this: "Frontera currently owns 212,392,155 Common Shares, which represents approximately 73.85% of the issued and outstanding Common Shares. Frontera also has a right to convert certain debt owed by CGX, which if converted would result in the issuance of additional Common Shares. As a result of the Rights Offering, Frontera could increase its ownership of outstanding Common Shares from its current ownership of approximately 73.85% to up to approximately 79.11% if no other shareholder participates in the Rights Offering and Frontera elects to exercise its conversion rights under certain debts owed by CGX."
So if no other shareholder exercises their rights and Frontera converts debt owed to it by CGX into shares then Frontera could end up owning 79.11% of CGX. So they will have essentially converted cash into shares at a higher average price than most longs have paid for theirs. They must think that the shares will have a lot more future value and worth the investment. Everything that they've done from convertible into shares loans, bridge loans, rights offering backstop has directed cash into acquiring shares. Sounds like they're long on CGX. I wonder if that CFO isn't on permanent vacation.