Complexity Sell Out, Sold Out or Savy business decision.
Is this just bad timing? Major drill activity surrounding moo that would add value to moo with any decent results. In fact, I suspect the moo land package would have become the subject of interest by those majors drilling in the area.
Moo's license up so either they raise capital or farm-in. So they farm-in with a private group (I sure hope there are not a lot of major investors in common and that this is completley arms length). Farm-in with a hefty (10%) payment to note holders allows for debenture extension.
How to value this
6% royalty. Hmm Might be something if a major producing find. Convertible to 20%. I'll bet the conversion provisions are in the event they don't hit anything commercially viable in the 11 test wells.
Your guess is as good as mine. With 120 plus million shares out I don't see moo being a homerun investment for those in .25 plus
Maybe a little action and profit from this level. But Im inclidined to believe this was a desperation deal and not in the favor of shareholders albeit an improvement from where we were last month.
Good luck