RE:Fairly simple next steps…westcanpride wrote: It's pretty simple at this point. If no JV/farmout is available via HL efforts, then FEC has to buyout CGX from Corentyne and the port.
Let's be real... FEC has ~257 million shares in CGX. They buyout CGX at $1 cad, they only have to pay $82 million cad for the remaining shares and in essence walk away with $175 million cad in "new" cash ($257-82). I say new only because this investment has been horrible for them and this cash would in essence open many new doors again.
That money would go a tremendous way to paying for new wells in Corentyne (provided FEC wants to keep the license and not be the next causality of government anger).
Would FEC allow $175 million in "free" cash become evaporated because they were too stubborn to play fair with CGX and rather allow them to become eliminated by the government? I guess weirder stuff has happened but I cannot see it.
This makes no sense at all.
Where is this $175 million in free cash coming from? Is this there own money after paying $257 million, losing $82 million in the process? That is not new cash, that would be there own cash and less than they started with. And why would they pay $1 per share when it is currently trading at $0.25??
If (and this is a BIG if) FEC wants to buy out CGX, they could offer a nice premium to investors for the outstanding float at about $0.40 per share, or a 20-1 share swap (with FEC being about $8 as of today).