LFD / VST Merger - ThoughtsI am a VST shareholder and was looking to purchase some LFD shares. As for the merger and sell-off I personally would not be happy (and I think many VST shareholders will agree) with the merger as that would dilute any potential for VST rise in share price while they are in middle of drilling. That said if that were to happen (and I do not think either side would be happy for their own reasons) it would most likely be done based on fully diluted market cap (not share price) - i.e., currently VST 232 m diluted x .0.69 = $160 marketcap vs. LFD 225 m diluted (211 + 8 m shares and 4 m warrants from April 14 PP) x 0.23 = $52 marketcap. That would be in the ratio of 160 / 52 = 3.07:1 or roughly 3:1.
LFD share price has been unusually stable for some time. In addition, recent share price drop in VST despite their drilling entering the deeper and likely the more prospective layers and in addition the quick share price suppression despite the oil discovery by KNOC just above their block suggests to me an obvious price manipulation to keep the VST share price down. This may be to create an artificial price stability in both stocks LFD and VST stocks to prepare for a smoother transition / merger / share conversion.
I will post a similar message on the VST board. Looking forward to your thoughtful reactions.
GLTA