Connacher Oil & Gas Ltd CLLZF

RE:RE:What debt holders pay for sales

[strzelin]

You are right . Connacher will issue much more then suggested 400 million shares.
To give the debt holders 98% control CLL will have to issue new 22.05 billion shares for the total of outstanding shares equal 22.5 billions.
 
2% of existing shares = 450 million shares
98% new shares = 22050 million shares

I think they will use 100 factor for consolidation which will bring down the total of the outstanding shares to 225 million.
So if you presently own 1000 shares you will get 10 new shares.


If the WTI stay in about 50 to 60$/bbl the New CLL shares will trade at about 2 to 3$ per share (if consolidation factor is 100).
The share price is based on the assumption of $30000 to $40000 for 1 bbl/d production X 15000bbl/day and 225 million outstanding shares.
 
Remember that you can vote against the deal.
Individual investors hold more then 80%  of outstanding shares. It seems that the debt holders (who are getting all their money back plus the interest) and the management (who is protecting their high compensations) are pure winners of this deal.