Hoping GEo does not get Safe Ap by Sptem 30With Audit results in favour of BNK. If Geo does not get SAFE approval then BNK shareholders are better off. They will get refund of $37m plus US $20 million.
That will be decent amount of cash for the company do deal with the low oil prices for a while.
Lot of investors do not feel comfortable with the deal as the payout has been delayed. $575 million is not a huge amount for China. I have seen Billions of $ deals done in a much shorter time.
There is a lack of clarity from the both the companies. You cannot read the GEO financials & see how much liquidity the company has.
I have yet to see a statement from both which clearly state that the y have funds available to pay as soon as SAFE approval is received.
There is confusion of an audit & about another entity that is supposed to buy BNK.
BNK management has done a poor job selling the company when the oil market had collapsed & also to a company that is not very transparent.
Few large investors had sold the shares of BNK recently when the stock hot $1.70. There is a short position in this stock of 5 728 326 shares short position has been inching up in the last three reports. It increased by 595 944 shares in the last report.
There are a few investors that do not trust GEO.
Now with BNK audit cleared & the money coming back & with $20m the shareholders of BNK will be better off.
If BNK did not get a GEO offer the stock would have bounces over $2.00 on its own. Most oil companies that have survived their prices have doubled to tripled from the bottom.