LGX Oil + Gas Inc ROAOF

Mrmomo: equity fee

[Resilience]

''an equity success fee effectively upon the occurrence of any of the following events: (i) an acquisition of more than 50% of the voting securities of Oilexco (ii) a sale of all or substantially all of the Company’s assets or (iii) the payment of any dividend or distribution or return of capital in connection with a sale of all or substantially all of Oilexco’s or ONSL’s assets. In each case the specified events require a successful conclusion of the sale or recapitalization of the Company such that the Banks can participate in such a transaction pari passu with all common shareholders of Oilexco.''

If this has gone through RBS would benefit greatly from a reasonable buy-out price.

''Under TSX rules, the issue of the common shares pursuant to the equity success fee would normally require shareholder approval. Instead, Oilexco will rely on a TSX exemption from the shareholder approval requirement, available due to the Company’s serious financial difficulty. The transaction is designed to improve Oilexco’s financial situation and is considered by Oilexco’s board of directors to be reasonable for the Company in the circumstances. As a result of Oilexco’s reliance on the exemption, the TSX will review the Company with respect to meeting the TSX’s continued listing requirements.''

Second of all I haven't seen any TSX exemption - nor confirmation of the equity sale.