Palliser Oil & Gas Corp. PSLRF

RE:Deal Gets Done

[Shoulders]

Well perhaps now you see why the concern.  The assets are not that great.  They are not undervalued (if fact it is clear Maha was willing to pay more than they were worth).  Not even going to bother commented on the 'fixed assets' being more than enough to cover the debt.  I'll  let reference to the forbearance agreement in yesterday's announcement be proof enough that this is not the case because if they were the Lender wouldn't need a forbearance agmt in place.

Removing all the hype and needless input about China, airline hedges and Paul Colborne what does the press release tell us.

1.  Maha completely failed to raise the capital.  The debt raise (which was the repay the bank) failed and it appears that their equity raise of $15mm likely also failed.  The equity investor was likely waiting for the debt piece to get in place before commiting so without that they stayed away.

2.  Failure to raise the debt means that ball is bank with National Bank.  They've lent these guys too much and without a greater fool than them they're in a bind.  So we will expect to see them play along and extend the terms of the forbearance agmt to Nov 28th in the hopes something good will happen.

3.  The something good will be an equity raise of much more than $15mm and this remains a condition of closing.  I'd have to assume it will be at least $30mm with the additional $15mm going to National Bank to repay a portion of the loan.  Here is the rock and a hard place for all you long suffering shareholders.  If they can raise the equity (and this is a bit of a long shot) the terms will be very dilutive to the old shareholders and you'll be holding something worth a few pennies.  If they can't raise the equity it will depend on how long the National Bank waits before it takes action and end this saga.  Either way you're holding something worth between 0 and a few pennies.

There is no conspiracy, no fear mongering.  It is simple unemotional, on point analysis.  This company is, was and remains broken.

Can't wait for the next quarterly financials.