RE:By Buying 84% Of Warrants, CVE Did Share BUYBACKS On CREDITIt is more like a lay-away plan. They know FCF ramps up and cap-ex reduces in H2.
GLTA
ztransforms173 wrote:
- bought 45,484,672 warrants @
$ 15.6357
- only REQUIRED to pay for the warrants by January 5, 2024
- so CVE did Hutchison Whampoa Europe Investments Sarl (HWEI) and L.F. Investments Sarl (LFI) a BIG FAVOR by AVOIDING THEM putting up ALMOST $ 300 million in CAPITAL to EXERCISE the warrants at $ 6.54 per common share
- in RETURN, they gave Cenovus Energy the FLEXIBILITY to pay the warrants almost a SEVEN (7) month GRACE PERIOD although it is HIGHLY LIKELY that CVE will make INSTALLMENTS BEFORE {when the US refineries go FULL STEAM in the second half of 2023} as soon as the EXCESS FREE CASH FLOW is GENERATED
- the great thing about this for CVE shareholders is that EFFECTIVELY 45,484,672 FUTURE common shares of CVE were BOUGHT (and CANCELLED) and SOLD @
$ 22.1757 WITHOUT MOVING the MARKET PRICE of CVE
z173