Post by
ValueCan1 on Sep 16, 2020 2:35pm
Another perspective on lowball bid/possible rights offering
Hello,
As I try to wrap my mind around the insanity of this bid, I was looking for some other small caps to buy. I ran across Leucrotta and looked at an EV of around 132 million with 4000 boe production. Less than 10% of painted pony and arguably not in as good a location. I know this is a forced sale but how can there be that much difference. This implies an EV for pony of well over 1 billion.
This company should start preparing a rights offering to shareholders to holders to pay off the line of credit.
All in my opinion.
Comment by
TradeTracer on Sep 16, 2020 3:50pm
Big one is that debt holding for PONY Basically 3x equity is what puts this horse down, I see LXE has no debt whatsoever (according to their presentation) and it's hard to force the hand of a company with no obligations