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Reservoir Capital Corp RSERF

Reservoir Capital Corp. is a Canada-based clean power investment vehicle concentrating on operational power projects located in emerging markets. The Company has two minority equity investments in its portfolio, both held through its wholly owned Mauritius SPV, Kainji Power Holding Ltd, giving the Company approximately 46 megawatts (MW) of net operating capacity in four hydropower assets. Its first investment is a minority interest in Mainstream Energy Solutions Ltd (MESL), the concessionaire of two Nigerian hydro power plants located at Kainji and Jebba on the Niger River with a combined operating capacity of 922 MW. Its second investment is a majority interest in Olocorp Nigeria Ltd, which itself holds a minority interest in North South Power Company Ltd (NSP), the concessionaire of two Nigerian hydro power plants located at Shiroro and Gurara, both on the Kaduna River with a combined operating capacity of 630 MW.


GREY:RSERF - Post by User

Bullboard Posts
Post by bendystockon Feb 16, 2016 6:44pm
120 Views
Post# 24563828

Leveraged after tax NPV of 71.1 to 101.2 Million Euro's

Leveraged after tax NPV of 71.1 to 101.2 Million Euro'sI agree with you on the 60% chance of a positive result with A2A VanWilder1, also I commend your Nick Name, super funny show.

I disagree on the purchase price.  I think that the purchase price will be significantly higher than .45.  Mainly I think the price will be higher because the majority of REO's shares are held by insiders or others likely in it for the long run / end game.  These investors typically have the funds required to wait things out.

This is an old feasibility study but it estimated the leveraged after tax net present value of the project to be between 71.1 million and 101.2 million Euro's.

Reference:
https://www.reservoircapitalcorp.com/s/QwikReport.asp?IsPopup=Y&printVersion=now&X1=558476,531883,524828,509549,506063

With a fully diluted share structure of 25.8 million shares and a majority of these held by insiders and those not needing instant gratification I think they can hold out for a better deal than .45

Due to who holds shares I hope any company making an offer will not be able to count on retail investors to pressure management into anything and I also think this contributes to the current share price not being an indication of the project value.
Bullboard Posts