IS FRONTERA ACTING AS CGX’S STALKING HORSE? The recent $35M loan agreement, I strongly suspect, sets the narrative here on what a outside third party would need to propose in order for excite interest from either Frontera / CGX.
In a unique way, Frontera has telegraphed to outside parties that they are willing to loan CGX the required capital, at a favorable interest rate, and if not paid back by Sept 2023, will be converted into CGX shares at US $2.42/share.
If an outside party wants to participate - options are:
1) buy shares in open market,
2) make an offer over and beyond what Frontera has made to CGX recently as part of convertible loan.
If outside party unwilling to offer premium - Frontera will step into to capitalize cgx under similar / historical terms to get Wei drilled and evaluated.
There may be merit here that Frontera is playing the role of a stalking horse to ensure they get maximum value for these assets.
GLTA