LFD Expects $64 million from warrantsIf share price doubles which will likely happen, LFD will receive $64 million CASH from warrants. This is one reason why management would be motivated to move on to drilling as soon as possible in April so that the news of oil shows in 1600 m from the Jeribe formation would send us to $1 thereby trigering the early exercising of the warrants. The $64 million CASH would be sufficient to complete & test C10, drill C11 and build the early production facility. If all goes well, LFD will start selling oil in Fall of 2011. This is a very ambitious plan for the junior at such a rediculous market cap.
Funding Source & Warrants Expiry Dates and exercise price
The company has a compelling incentive to execute its business plan as planned in order to ensure that it could raise approximately $60 million from the following warrants. This is why I think we would double in 3 to 4 months:
Warrants outstanding: Exercise Price: Expiry Dates:
- 75,000,000 warrants at 0.75 expiring on 07 Jul 2011
- 9,500,000 warrants at 0.65 expiring on 20 Sept 2011
- 4,166,666 warrants at 0.65 expiring on 14 Oct 2011