Arcan Resources Ltd ARNBF

RE:RE:RE:Fire the lot

[teevee]

ThompsonRob007 wrote:
I can't comment on the management team because I don't know the people or history.
It is strange that Arcan is a light sweet crude producer with great field netbacks who can't seem to get a $100k/boed  for the assets. Is it management or are there issues with having 2 other competitors own > 35% of the common stock? At one time Crescent Point and Lightstream thought it was a good idea to invest millions in Arcan. To date, both have lost millions on this very public move that is not typical for a oil and gas producer. Just speculation that will all be sorted out in the next couple of months as the Aspen Leaf deal progresses and the 3 votes are put forward to bond owners and shareholders.

The outcome will be very interesting for the following reasons:
1. LTS and CPG could vote the deal down owning 38% of the stock, however, because ARN can pay debentures with stock, if they vote the deal down, then ARN may have to pay debentures with stock at market prices which would dilute them by 85-90% or more depending on share price.
2. The debenture holders are likely to hold their noses and vote in favor because they don't want to be paid with stock, which would only decrease further in value when they tried to convert to cash. 

there should be a SMF mailed to shareholders soon and that will provide more details to everyone concerned.