Downwithdotcom1, I’m with you on your post!
Every Press Release by the GTE management has some obscure element to it. For instant, Gran Tierra currently has outstanding US$587,590,000 aggregate principal amount of 9.500% Senior Secured Amortizing Notes due 2029. They want to add an amount of its previously issued 9.500% Senior Secured Amortizing Notes due 2029 (the “Notes”) in a private placement to persons reasonably believed to be qualified institutional buyers in the United States and Canada. However, we’re not told the additional amount to the existing outstanding US$587,590,000 debt we will have to bear!
Gran Tierra intends to use the net proceeds from the offering to finance the cash portion of the consideration payable for the shares under the terms of the proposed acquisition of the entire issued and to be issued share capital of i3 Energy plc., and any remaining net proceeds from the offering for general corporate purposes, which may include additional capital to appraise and develop exploration discoveries, repayment of other indebtedness, working capital and/or acquisitions.
They say “of course, these new Notes will be guaranteed by Gran Tierra”. I say “No”! The way I see it is Gran Tierra shareholders will guarantee, have to risk and all to loose. The Management and Board of Directors are irresponsible and self serving! This deal was put together too quickly and quietly, I wonder if the Management and Board of Directors and families have well profited on this i3 Energy acquisition deal?
They do have a fiduciary duty to us the shareholders and the actions they take. Class Action We need transparency !!!