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Atikwa Resources Inc. V.ATK

An oil and natural gas company


TSXV:ATK - Post by User

Bullboard Posts
Comment by Irulecrapon Jan 20, 2011 10:01am
325 Views
Post# 18001006

RE: News... Financing part is interesting

RE: News... Financing part is interestingSomeone must  have faith in these wells.

FINANCING. The Company has recently secured access to a non dilutivethird party financing program (the "Funding Source") which couldprovide a significant portion of the capital required to fund theCompany's go forward drilling program. Under this program, the FundingSource may elect to provide up to 70% of the capital required, on awell by well basis, in exchange for a predetermined share of therevenue stream from the well. That share of the revenue stream is thenstructured to decrease on a sliding scale basis after certain economicobjectives have been met with a Company buy back provision contemplatedat the end of the program. The Funding Source provides the company withaccess to capital without reducing its ownership interest in the landsor causing further dilution to existing shareholders through the needto issue additional shares from treasury to fund the drilling program.
Bullboard Posts