RE: Retated Preliminary Prospectus (Monty)You raise some reasonable concerns Monty. Here's how I see it.
Clay won't leave as Chairman of the Board of either company until he knows that Jim and Sue can handle the roles of President in Paramount E&P and Paramount Trust. I'm looking at Paramount for the Trust conversion or about a one year time period. Projected payout to trust holders is around $1.80 per unit. Most trusts average a 15% to 20% return. That suggests that the unit price per trust unit should be $8 -$ 10, IF they pay $1.80 per unit. If they come out at $5/unit in the offering, that is in my mind, a fairly safe "double" in less than a year. Would I stay invested in the long term? That depends on how Jim and Sue do.
Once Paramount E&P gets their money from the Trust offering, look for payables to be cleared faster than in the past. I think management knows that this "financing" charge is happening and they will look to correct it once the offering goes through and they have the cash. The Riddells have been involved for too long in the industry to out and out "stiff" someone.
Package or no package. I don't know what happened here but who cares? If you are offered a job and don't take it why should you get anything? Unless you had an employment contract that talks about change of control then you are out of luck. I heard that the staff that left didn't want to work there. That it was their choice. However I doubt very much that leaving Summit staff got absolutely nothing. Does anybody know?
As for an SEC/OSC listing versus just a OSC...I can't see them going with just OSC. It appears to me that they are 3/4 of the way through the SEC listing. Why stop know? Wouldn't the impact of both being listed at the sametime be a better investment relations move?
I'll be buying more POU on the dips.
ARRHW