Zargon Oil & Gas Ltd ZARFF

Conversion at C$0.10, all-stock deal NOW with acquirers DOWN

[stockfy]

If ZAR converts now, it will have zero debt.

With zero debt, ZAR will certainly will be attractive both to public companies and private companies who want to go public quickly.

If a deal takes place now, it will most likely be an all-stock deal, so all the ZAR holders will benefit from future capital appreciation because  ZAR's potential acquirers have dropped a lot lately. This is a key parameter that most ignore. This will not be the case if the conversion takes place in December 2019. ZAR's acquirers will recover by Dec 2019.
 

Another tailwind for a deal post-coversion is that Zargon's significant tax loss credits are significant.

 

Some debenture holders might think that they could potentially get 1%-2% more from ZAR in December 2019. This is highly questionable first because of the admin costs and legal costs associated with the process and second because WCS has risen a lot lately and has returned to 2017 levels when ZAR was generating positive operating cash flow. So ZAR can sell its North Dakota assets in 2019 at a decent price and the stock could jump well above 10 cents. In this case  the debenture holders will receive much less than what they receive if they make the conversion now at 10 cents.

 

[rad10]

Didn't they just take out a 3.5 million U$ secured loan on the ND assets stockfy?  Don't let any of the facts get in the way of your fantasy. You really are quite the chump.  How much have you lost on Cardinal, ATH, CCX and other dreadful calls? The market will stay "irrational" a lot longer than you will stay solvent.

[hawkowl1]

Facts and logic are being presented here.  I doubt there is even 2% of debenture holders here commenting..  Pablo was strongly against deal and appears to have seen the light and now in YES camp. Who is going to advocate on your behalf for a better deal? This is all retail investors. Totally different shareholder base from Twin Butte and other companies mentioned. Totally different

[Bonecreek2]

Who would vote yes, the stocks would go to 1 or 2 cents, the crappy part of this is Hansen will probably get some kind of payout when he should get pushed out his office window!!! 

[funfacts2018]

How kind of you to up the ante by a whole nickle.  I'm going "no" on this. I'm fine being paid interest in shares at whatever the "real" share prive is over the next year.  I expect that alone to add 10% to my bottom line over the next 15 months, with no actual impact on the company's cash position.  The WTI-WCS differential has already shrunk from

[rad10]

I don't think for a moment that this individual moves markets...........  But how many debenture holders bought into this absurd line of reasoning?