GREY:VFGGF - Post by User
Comment by
ofirmeon Feb 17, 2015 4:02pm
207 Views
Post# 23437213
RE:RE:RE:Cardinal Energy acquires PRY
RE:RE:RE:Cardinal Energy acquires PRYThere are a number of versions of the final number of outstanding shares:
217M shares will be exchanged at 1:100 = 2.17M new shares.
217M shares will be issued warrants at 8:100 @ $0.25 (good for 30 days only) =
0 - 17.36M (depending on who how many are willing to put more money in). this will be
backstopped.
private placement of 8M shares X $0.25 = $2M
warrants for the private placement (for 5 years or when the 20 day average price reaches
the strike price):
8M @ $0.30
8M @ $0.35
The bank syndication will get warrants of 10% of outstanding shares and warrants @ $0.30
with term of 5 years or 30 days after the credit line matures.
The NOL's of the company will be sold to Cardinal with 10% of the assets for $23.5M.
The debt on the company will be (assuming no warrants are exercised)
$111.5M (total net debt $114.5M) - $23.5M - TBD ($0-$4.4M) = ~$88M drawn on line of credit.
The issues that I see is that we do not know how much is the cost of these new people (who
are the same BOD that failed before and management who moves between juniors) per
year and what will they do for the debt. they sold the losses, but did not bring in money to fix
the debt.