CanAsia Energy Corp V.CEC

Cash cache before sale

[bullhorn3]

If the last quarter was any indication, POE should be making money, so if the sale takes place in September, say, POE should accumulate some $M in cash which I will call "June-Sept cash" which will presumably go to CanAsia. Was there already $7M in a bank account when the announcement was made in June (in which case CanAsia will startup with $10M, say, not $7M per the announcement)? Or will the June-Sept cash be part of the $7M. Or will the June-Sept cash cover unknown selling costs not mentioned so far?

[bullhorn3]

US$650K to Moyes & Co. is part of the selling cost.

[radcat]

If Pan Orient pulls out of the deal should they get a better offer we would have to pay a termination fee. What if Dialog were to pull out? With oil prices now heading lower I wonder if this is a possibility. Haven't seen what they would have to pay Pan Orient if they were to change their mind.   "a USD $1,550,000 termination fee payable by Pan Orient in certain circumstances

[nozzpack]

This deal was originated in late fall 2021 when oil prices were below $ 60. Oil rose in a spike in late March and is now retreating somewhat. Then, there is the substantial excess profits when oil is above $100. These deals are made with respect to the longer term futures for oil. So, very little chance of the deal collapsing in the absence of Force Majuerre event..

[dowd]

Radcat, I also looked through the purchase and sale agreement for this information and couldn't find any termnination fee in the case of a buyer default. Also, I did not see a deposit paid? So, my conclusion is that there is no way out for the buyer. No contingiencies, which makes sense as it looks to be a cheap price. So, if the buyer defaults we would have the option to sue for specific

[radcat]

I can't recall ever seeing a buyout where only the acquiree is on the hook for defaulting on a deal. Without the acquireor being held to the same standard, there doesn't appear to be a penalty Dialog would have to pay should if they decided to take a walk. Not sure how POE could sue since this deal hasn't any consequence for the buyer in writing. I guess Jeff could always send his