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Atikwa Resources Inc. V.ATK

An oil and natural gas company


TSXV:ATK - Post by User

Comment by unfeasiblylargeon Mar 06, 2013 8:47pm
283 Views
Post# 21091105

RE: The Final Nail

RE: The Final Nail

Well, it would appear that delayed gratification is proving most ungratifying to Drillin' and a few others, but my own views are more in line with those of renoit7 and stockmanners.

Here's how I figure it. Step 1: we go from 286 to 356 million shares with a private placement of $3.5 million.

Step 2 (and I expect to be voting yes on this question) our coffers receive another $18 million (note: this figure is expressed in dollars, not number of shares, and so I think it reasonable to continue these calculations on the basis of a $.05/share price for placement #2, as well). Also, this second private placement is open (15%) to existing shareholders and so at the end of the day, current shareholders would hold somewhere between 40% and just shy of 50% of the outstanding shares (286,000,000-340,000,000 to the the new holders' 376,000,000-430,000,000). 

As I read the last financials, our debt and outstanding liabilities are running around $7.5 million and so the infusion of cash should clear out these obligations and leave us $14 million to develop the company which -- one would presume -- is precisely the calculus of those providing the additional monies to buy controlling interest in a hurting company.

Even if one wanted out immediately, it should be realized that receiving less than $.02/share wouldn't even reflect the residual cash value of the company AFTER its outstanding debts have been cleared, nor would it reflect the value of any of Atikwa's equipment, properties, or revenue potential. For these reasons, I respectfully disagree with the notion that we've been sold out and/or that our post-deal value will be only a fraction of a penny on the share. My expectation is trading in the .025 - 03. range prior to mailing of the more detailed information about the proposed arrangements; .03 - .045 prior to the April meeting; and the price moving beyond .05 thereafter depending upon further announcements/developments.

glta, ULarge

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