GREY:CUDBF - Post by User
Post by
rbt2b2on Sep 24, 2014 2:37pm
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Post# 22966854
Interesting. KMDC did not drop out. They are in.
Interesting. KMDC did not drop out. They are in. Richard Kosick's Petro One Energy Corp. (POP) had a bad day, plunging 35.5 cents to 38.5 cents on 5.45 million shares. A previously announced financing arrangement with Korean investment firm KMDC has been delayed. In late July, KMDC agreed to financings of up to $100-million, beginning with $6-million in private placements that were scheduled to close yesterday. Instead, KMDC has asked for an extension to Oct. 7, citing the need for extra time to meet financial authorities' demands. Petro One had been hoping to start drilling soon after the money was received and had already started the permitting process for the initial wells. Under the terms of the agreement, KMDC will provide up to $100-million in two phases of financing, for the drilling of up to 97 wells with Petro One in Saskatchewan and Manitoba. The news more than tripled Petro One's stock over the following weeks. Today's delay, however, is making investors nervous. (Some of them may remember that in the spring of 2013, Bellatrix Exploration Ltd. (BXE: $8.01) arranged a $300-million joint venture with a Korean company -- never identified -- which asked for a one-month extension, then dropped out altogether. Bellatrix's stock fell on the news, reaching a low of $4.70, but it has recovered since then after finding new joint venturers.)