TSXV:ART.H - Post by User
Post by
cincoagainon Dec 27, 2011 2:37am
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Post# 19352434
how about this scenario...
how about this scenario... Let me first say, I would be very happy with a buyout. the higher the price the better. all good with me. this is just speculation, however, what i could see is this: if genel and longford arent able to agree to a buyout price that works for both parties, then instead genel does a finacing with longford whereby it buys 200 million shares at $.20 per share for a total ot $40M. This works for both parties. for genel, it effectively gets them 50% of longford and thereby indirectly they have bought into half of lfds play in chia. so now genel effectively has a 40% interest in the play instead of 20%. at 50% of the outstanding stock owned by genel, it is a change of control and genel effectively becomes the operator. for longford, it gets them the $40M they need to pay the KRG and pay for drilling. it also effectively dilutes existing longford shareholders from 40% to 20% of the chia upside. However, it gives shareholders a clear path to drilling the first hole, continued participation in follow up holes and continued participation in the upside potential of this play. So, all the management and shareholders that bought in or have options at higher levels can still have a shot at the dream, the home run. hey i could be wrong, have you ever heard taxjerk say that?