RE: fRE: $37 million is Ed's parachute not yours I don't think that Ed will dump his shares @$2.45, why would he. Assuming that he knows that he will be found guilty, this hearing has yet to occur, then he could likely appeal. Then, sentencing will follow; all this process could potentially span over a full year. During this time, he would have plenty of time to take measures in Yemen to increase production and initiate a program in Ethiopia, then start selling when he sees the end of his days at Calvalley. I seriously think that this step in buying $15M shares is simply to reduce the risk in another hostile take over. He could have gone the old route (requesting from TSX the purchase of 5-10M in 2013) but with this approach, the share no. will be at ±78M in less than 2 months from now. I suspect that at the next earnings, they will release more news on the steps to increase production.
I was just reading again the Cormak Report (Feb 2011) where a target price of $7 was set for Calvalley and made their Top Pick with a lower production rate.
here is the link to the Report:
https://www.cormark.com/ResearchReports/East%20Africa%20Report%20-%20Feb.%203%2011.pdf