CGX Energy Inc V.OYL

How much is CGX worth

[liquorwolf]

You can throw out numbers supporting any position, but in reality, CGX is worth what FEC's says it is worth. Retail investors trade with the wind. News release POP, Interpretation DROP. Currently, they have a market cap of $500mm U.S.D. Based on the latest news in which FEC loaned them $35 large on erroneous terms, we can deduce that CGX is dead broke; on life support. So, if they were a stand alone company one can interpret their value by dividing up the spoils. But that is not easy because courts will have a say in who walks away with the goods. Thinking on a breakup basis is a better way of calculating its value. Reading their latest financials (Microsoft Word - CGX MDA - December 31 2021 - Final (cgxenergy.com) is an effort of futility, but one can see that the company's life line is FEC. Also, they have capitalized $105mm of expenses for their Guyana properties - $15mm for the port and $90mm for their Blocks. Total outstanding shares were 356 million. The latest news indicates that FEC will own approximately 78% upon conversion. As you can see, FEC is slowly gobbling up CGX. One question remains, suppose FEC decides to unload  their interest to a buyer, what happens to the other 22%.?

[Schreibzey]

To your point, this loan is a page out of Li Ka-shing's model of converts, most recently in the mining space. Go look at the Queens Road Capital briefing to see how QRC provides money to companies like NXE, ISO, LA, among others. If I recall properly, in the majority, warren Gilman receives his shares in exchange for interest payments. So that's likely what will happen here, a way for both