Spartan Delta Corp T.SDE

December 7 Presentation

[Seppelt]

After insiders exercised their $1 options last week, the number of shares outstanding went up to 177.7 million compared to 155.5 million shown in the recently updated November 30 presentation. Accordingly, the number of dilutive instruments (options and awards) is down to 6.9 million, diluting proceeds are down to $15.7 million. That is down from 22.3 and $32.1.

[Seppelt]

Correction. Those were $1 warrants. The recent filing is also showing $3 options. Insiders are ready to collect the special dividend, lol.

[PabloLafortune]

Good find Seppelt. With the additional dilution and tax, there is very little special dividend left.

[fauxtomato]

I think the game that was played from the RTN days to earlier this year was maximizing the value of the options (which I think topped out at around $8? That's from memory from IPO and there are a lot of drinks between then and now). Judging from the updated presentations https://static1.squarespace.com/static/5ebeb3beb8891c6346025774/t/638761fcfea9e744069d169e/1669816836209/2022-11-30-Spartan

[PabloLafortune]

About 4.5M shares were added to the fully diluted share count as per the latest presentation but in the grand scheme of things, its guacamole, you are correct. One thing I've noticed is that natural gas seems to have a much firmer base than oil. When oil crashed in 2020, natural gas didn't go down much. And now, oil is basically where it was a year ago whereas NG is much higher YoY. 

[fauxtomato]

I thought the fully diluted number had been around ~178M for a while, but I could be reading it wrong, sorry. It's pure conjecture on a Westbrick / Deep Basin spin off. I know KKR has reached their horizon on it and have been dancing around taking it public. With AECO futures at ~$4.50 for the next few years this could be an ok time to market a yield vehicle to the public. Can't see other

[PabloLafortune]

I'm pretty sure I got that 173M figure from one of the presentations but yes the fully diluted is 178M and it hasn't changed recently.  My bad. I think the Press Release was made because they are contemplating one (or more) material transaction.  Not sure a buyback qualifies. Not even sure putting Pouce Coupe, Simonette and Flatrock for sale collectively would either (not worth

[fauxtomato]

I think we're in agreement, I'm just talking to fill the time. Definitely they're for sale: I think the Deep Basin and Montney properties find different buyers, or the Deep Basin is spun out as a new ticker and SDE continues to develop Montney acreage. [ The buyback/dividend would only happen if the 'strategic review process' or whatever they're calling it concludes with

[biker222]

thanks for your thoughtful post. nice to see knowledge based postings to help fill in the blanks on this one.  without great insight into micro/ technical of SDE I have yet to see a timely " strategic review" at such a positive time result in anything other than a partial or full liquidity event. Sit tight - lets watch after special dividend goes X.  Great time for