GREY:QEXXF - Post by User
Post by
veronikagermanyon Mar 08, 2014 1:40pm
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Post# 22298400
$10M DEBT and 75% Nat Gas
$10M DEBT and 75% Nat GasAccording to the mgmt, the company has also $10 million debt and 75% of its production is natural gas. I set the things straight just because I do not like when the pumpers mislead.
I quote from the latest Q3 2013 report:
1) The foundation of the Acquisition is located in 3 regions of Western Canada currently producing more than 950 boe/d (of which greater than 25% is oil and liquids), including developed land of approximately 91,312 acres (net)...... 2) Quattro will operate the majority of the assets being acquired and will own a 75% to 87% working interest in these conventional oil and gas fields in Western Canada. The effective date of the Acquisition is January 1 st, 2013, with a purchase price of $7.8 million plus G.S.T. and customary closing adjustments. Funding of the acquisition will be completed through a combination of a $5.5 million 4-year term debt facility with Business Development Bank of Canada at favorable rate of 7.15% per annum and assumed working capital.
In addition to this financing, the Company will continue to work towards an additional financing of up to $4.5 million by way of Convertible Debentures with a 3-year term paying an annual interest rate of 8% with a conversion price of $0.50/share and 125 bonus warrants priced at $0.50/share for each $1,000 debenture issued.