Zargon Oil & Gas Ltd ZARFF

Conversion at $0.10 now or at $0.20 - $0.25 in Dec 2019?

[stockfy]

The debenture holders will receive common stock either they convert today or in December 2019.

The debenture holders will also receive the interest in March 2019 in common stock.

Both are facts.

So if they convert today, the conversion price is 10 cents.

If they convert in December 2019, the conversion price will be at 95% of ZAR's common stock price in December 2019, according to the terms of the debentures.

Some resident short-sighted posters/debenture holders who have been posting non-sense and empty words over the last months while exposing their ignorance about the energy sector think that they can get a few more from ZAR if they wait until December 2019. They think that ZAR will remain under 10 cents, because ZAR now is below 10 cents.

How short-sighted.....How clueless.......How ignorant......

The current price of 10 cents is the result of 3 reasons: Epic sell-off in WTI, Epic widening in Canada's oil spreads and relentless tax loss selling because ZAR was an excellent tax loss candidate as it was much higher than 10 cents in the first nine months of 2018. 

In December 2019, all these 3 reasons will not exist (No tax loss selling, OPEC cuts production, Enbridge's Line 3, crude-by-rail shipments etc.). 

On top of this, ZAR will most likely use the recent financing to drill and then sell its North Dakota asset in 2019 to pay off the recent small USD loan and keep the rest in cash.

With the remaining cash, ZAR could buy back some its debentures that currently trade at just 40% of their par value and eliminate a significant amount of them.

Due to higher WTI and narrowed oil differentials in Canada by December 2019, ZAR's common stock will most likely be at 20 cents or 25 cents in December 2019.

So the debenture holders will receive MUCH LESS SHARES than what they will receive now if they convert at 10 cents.