Frontera Energy Corp T.FEC

Is my math correct?

[kcac1]

About 92% of all shares tendered?  And they are going to buy about 4.35% of your tendered shares?.

So, someone with 10,000 tendered shares with a basis of $8.00C ($80,000 worth) will have about 435 shares repurchashed at $12C making $4 profit on 435 shares or $1740, equivalent to a dividend of just over 2%. Then for many, if not all, they withhold taxes from you $$?

So, how did they come up with this 6.6% yield in the initial press release?

"CALGARY, AB, Sept. 4, 2024

Offer Results in a CAD$0.48 Per Share Distribution or 6.6% Yield (to Frontera's Share Price Prior the Offer's Announcement) Assuming Full and Pro-Rata Shareholder Participation"

"Approximately 77,565,602 Shares were validly tendered and not withdrawn. Since the Offer was oversubscribed, the tendered Shares will be purchased on a pro rata basis following the determination of the final results of the Offer. Frontera currently expects that shareholders who tendered will have approximately 4.35% of their tendered Shares purchased by the Company." 

Only de Alba and team could come up with such a complex and costly way of distributing so little money to the average stakeholder.

[Frank007]

I still sa it's an orchistrated shake out ...even the headlines of every one wants out stinks of ...you know what ...I actually bought some this morning .....with the reduced share count the price per shar should be approximately $8.62

[Jimmmy666]

If it were a shake out 99% of the colony could have just been had for 12 dollars per

[Frank007]

It's a shake out for sure ....just look at the trading volume and who is swapping the shares ...heck not ever two thousand shares exchanged in the u s ...lol ...what a con game ...

[a2bman]

I think the 6.6 comes from market cap at the time of the deal about $611MM @ 7.25 share price and the 40.5MM paying out. 

[CPFStocks1]

A total of 3 investors have a majority stake in the company with 53% ownership.   So this would indicate that with 84.19M shares outstanding they tendered 44.62M shares and sold 4.35% 1.94M shares @$4.00 CDN = $7.76M CDN for their investors.   For a company that is supposed to have $180.66M cash on hand (from Yahoo) why would they do this??

[Frank007]

The way I see this is ...as I was saying ....there is a farm down already ...they do not need to publicly announce until all the contracts signed ...so ...I see this a a very good way of getting weak hands out ...I just bought a few more ...it's a big con game played by professional horse traders ...