RE:RE:Botswana Farm OutI was a bit dubious of this deal at first glance but took another look and now although it's weird I don't see that it's particularly harmful to RECO. Or at least it's not devastatingly so.
Apparently Stienke accumulated/structured the Botswana acreage in his own name. I've seen this done before and it can be very lucrative for the individual staking/aquiring the ground. He then sold/transferred it to RECO but held back 50 % on certain terms that actually requires him to make certain payments to RECO over time, none of which are particularly onerous. He then took that 50 % and sold it to a Co. he was the CEO of for a large position of stock, although given that ROE properties are currently worthless I don't think the deal he did was particularly good. He took 30,000,000 shares increasing his position from 3 % to 11 % ...who cares.
Now when deals like this are done, pre discovery, all you're doing is trading large amounts of toilet paper for unproven ground but if RECO hit on it's Namibian ground that Botswana ground would be worth a fortune over night. So RECO did a cheap deal to Stienke who in turn did a cheap deal to ROE , I understand the RECO/Stienke deal but I don't understand why he flipped it ROE which is a pig. I would have kept the 50 % of Botswana and taken my chances that Namibia would work out and then flip Botswana for an absolute fortune.
But that's just me I guess. If Namabia and Botswan fails he still owns 30,000,000 ROE toilet paper. Hey, maybe we get another COVID spike and that ROE TP will actually be worth something.
hydrocarbss wrote: The following is a backstory with facts and conjecture. RNSFF (OTC symbol) led by Stienke went into Mexico in early 2010s. Mexico, struggling with crude production changed their constitution and allowed for foreign companies to bid on producing oil. It had been Pemex's playground for over 60 years. Just as RNSFF was going to hit a large field with modern extraction techniques, Mexico had an election. AMLO won and foreign oil companies lost. The govt just stopped the process of progressing on the contracts. Many people, wealthy people put up money for RNSFF. It hasn't really paid off for them. Here we are a few years later, Stienke has landed an entire basin in Africa. He has folks he might owe a favor, that hold RNSFF shares. Well what if there's a deal where RNSFF can get a substantial cut of the Botswana acreage for peanuts. Would that satisfy the big investors who still hold RNSFF shares? And there you have it.
Supposition and reality woven into a realistic narrative.