Zargon Oil & Gas Ltd ZARFF

Energy Oil & Gas E&P

Zargon Oil & Gas Ltd is a producer of oil and gas. It is engaged in the exploration, development, and production of oil and natural gas in Canada and the United States. The company works on three phases of oil reservoir exploitation which include Primary recovery, Waterflood recovery, and Tertiary recovery. Its portfolio includes Alberta plains north, Alberta plains south and Williston basin projects.

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Zargon Oil & Gas Ltd > if SP is at 0.05 now, why Debenture-holders will accept 0.1?

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Comment by rad10on Nov 23, 2018 4:09pm

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Post# 29015886

RE:RE:if SP is at 0.05 now, why Debenture-holders will accept 0.1?

exactly - and that is why a "no" vote makes sense. Get a year of interest in cash, dilute the shareholder base and receive a higher percentage for the principle in diluted stock in December 2019.

The simplistic view that the debentures are trading at 40 cents on the dollar is not the whole story. The notes are very illiquid. The calculation is based on the face value of the note irrespective of where it is trading.

Any would be buyer knows that the debenture overhang is going away within 13 months - there is no need to take the first offer................

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