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Twin Butte Energy Ltd TBTEF

Twin Butte Energy Ltd is an oil and natural gas exploration, development and production company with properties located in Western Canada. The firm's operational assets have been sold to West Lake Energy Corp.


GREY:TBTEF - Post by User

Bullboard Posts
Comment by PetroExploreron Aug 23, 2016 3:19pm
93 Views
Post# 25169054

RE:RE:RE:RE:RE:RE:RE:but you bought this junk!

RE:RE:RE:RE:RE:RE:RE:but you bought this junk!Caution Scottie: any debenture conversion must be agreed upon, prior to the time that it is permitted to do a conversion, if the company can't pay the cash. That means any conversion has to be reasonable, so 1/2 cent is not on the table. According to the debenture clause, it has to be a price based on the last 20 trading days. That would put us around 4.5 cents, which would be diluting for shareholders. But I calculate about 1.9 billion shares are needed, not 3.4 billion shares. It could also be argued that the company should have properly tried to reorganize, prior to this stink bid deal, when the shares were trading higher. A fairer price could be 8 cents, which would be less diluting to shareholders. 8 cents would be about the average price of the last 20 days, prior to this stink bid deal being announced, in June. (I own both debentures and shares, so have a vested interest in seeing a reasonable outcome, for all sides.) As it stands, debenture holders can't demand a conversion, at the present time. So everything is stuck in a limbo. And they can't demand the missing interest either (the one that the company accrues in their financials, but just doesn't pay it.) All a debenture holder can do is hope that the company can keep going, and eventually in 2018, the debentures are redeemed for their proper face value, which would be the intent of a longterm buy and hold investment. But one thing the debenture holders can do, is vote NO, to block deals that are intended to bully them by not living up to the stated debenture agreement, that they would be fairly paid back their investment, in the event of a change of control.
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