Kasten buys at C$0.157, PFC will have C$8m cash to drill! Paul Cheung has bought more than 20% of PFC lately at C$0.12
PFC currently has 79 million shares
PFC will issue another 70 million shares for the new shareholder, Kasten Energy. So Kasten Energy will own about 45% of the new PFC.
Kasten will also own PFC's debt of C$3 million, which is convertible at C$0.157!
The new shareholder, Kasten Energy, buys at C$0.157
Additionally, the new management team seems to have a lot of experience in the sector
PFC is NOT dependent on the private placement. And upon completion of the deal, it will hold the remaining cash of about C$5 million and C$3 million from the debenture. So PFC will hold about C$8 million in cash to drill its new properties and bring the production at over 1,000 bopd with very low CapEx, according to the news.
The new land produces 100% oil, so revenue will jump by year end thanks to the increase in oil prices.
All in all, the deal sounds great to me and the stock must jump to at least C$0.12 tomorrow.