Post by
westcanpride on Mar 11, 2022 3:54pm
Over 2 million shares traded to remain only at $1.84CAD? Wow
At this point, our only hope as shareholders to see a meaningful increase in share price is to get a JV signed. If you look at the fine details in the news release from yesterday, Frontera can just as easily extend the loan beyond July 31 and just start demanding a 15% interest rate premium. Frontera has absolutely no obligation to convert that loan into $3.10 CAD shares at all. They could easily just extend the loan and re-do another conversion rate. They literally have CGX by the balls when it comes to money and financial decisons, and the fact that the loan is tied to CGX assets is quite interesting as well.
But beyond the new loan (which in essence only covers the cost of Kawa-1), the uncertainty around financing for Wei-1, two Demerera wells, onshore wells, port completion, G&A beyond July 31 is still quite large. Probably why we still sit at $1.84 CAD... a joke of epic proportions if you really think about it.
I wish to hell I knew Frontera's/Catalyst Capital's end game here. Sure, keep nickel and dimming CGX for easy shares and only providing enough cash to keep them alive for 6-month incriments. But to what end? By not putting up enough money to drill many wells and instead relying solely on one well result with incomplete data collection, Frontera hasn't made their job of selling this project any easier. Hopefully the government starts playing hardball with Frontera also.
Either way, I genuinely thought the share price woud go up and stay up today. Over 2 million shares traded today and we are currently at $1.84 CAD at the time of this post.
Although we will never know, I would love to see how Frontera pitches this opportunity to other companies. The question will be why should someone value this opportunity at many muliples higher than currently priced when clearly Frontera does not do the same with CGX. The irony being that Frontera does not have the billions needed to develop squat themselves and in essence they will like CGX in any negotations going forward.