Delphi Energy Corp. DPGYF

Reaction

[maldwyn]

The market reaction seems neutral to slightly negative. This matches RBC's reaction which downgraded the target SP to 0.15 from .20 (still double the current price FWIW).

Using BXE as an example of what will happen post-consolidation I would expect the SP to resume it's downward trend. This is because the market is valuing the company near zero and won't give it credit for non-zero per share improvements.

[Raymondjames]

Bns also lowered target price to .15 but viewed this deal  a positive.  No fear of bankruptcy now where shareholders get zero. Luminous will 67% of equity and similar number of the Notes.  Schneider is not an idiot. He is pouring $43m into a company that has an $18m market cap.  Long list of buyers at 07 cents. Delphi is better post deal. 

[RichyRich$]

I agree Raymond. Also the reverse split is a good thing because it allows the price to remain above $1.00. That attracts the larger investors as most have a rule not to buy if share price under a dollar. For those that don't understand reverse splits. You don't lose money. It's less shares at a higher prices you keep... but the total dollar value of your shares stays the same. $43

[Raymondjames]

Also permits Dee to buyout Repsol and take control of the JV project. I am more bullish on the equity at these levels. Luminous is taking this to at least .30. The consent warrants are exercisable at .149. 

[RichyRich$]

It also confirms the new well results are good. Remember they had to wait at least 3 months to get an idea of the flow through. So now they can start up a bunch more in the new drilled area. Luminus would not have invested $43 Million if not happy with the new well flow through. I'm hoping they come out with the new well results update before the next quarter report... to give us a boost when

[projectleopold]

This post has been removed in accordance with Community Policy

[Raymondjames]

I'm playing the notes on this one. Warrants are a byproduct of the existing notes. I like 15% interest plus the potential of 45% capital appreciation in maturity or change in control. The warrants are a plus. With Luminous behind this deal, I'm happy to follow suit. Having said that, can't help but think luminous paying 11 cents for equity receipts suggests he thinks it will be worth

[projectleopold]

This post has been removed in accordance with Community Policy

[Raymondjames]

Luminous owned over 50% of notes at $100 and close to 26% of equity. Now about 66% of each respectively. This is a small position for Tim but he struck a deal that was fair to all. Shareholders buying at $2 are not happy but need to deal with the cards dealt. No shorting here.  And yes tough to make a buck but even if this goes bankrupt at time of maturity, i will come out flat without an

[projectleopold]

This post has been removed in accordance with Community Policy

[Raymondjames]

The majority of the existing  notes were issued In 2015-2016. I signed up for that, as did Luminous. $100 per note. Bought more along the way...

[pennydredful]

I    added    to  notes      today     .   They  may   be  trading  ex.    warrants    now   ?  

[Raymondjames]

Me too. 65 is a steal.  3 business days before the court approval. 

[mike49]

I owned these notes back in the day.maybe time to revisit. reason for original purchase was because these were/are  cel notes (basically higher on the debt chain). Rare offering but more secure. makes no matter tho if all are upside down in the rhubarb. Stay safe

[Raymondjames]

The interest will be paid with Luminous on the Board.  The assets are good. If they sell the gas plant, they can reduce debt further. I expect  this company to be taken out in 2020.