CGX Energy Inc V.OYL

Rights offering and the share price

[pathfinder8]

I believe as Frontera owns such a major position in CGX, they could not just issue 44 mm shares to themselves at 1.63 when the stock was trading near 2 dollars. This way, current retail sharholders are deemed to have been able to participate but in the end, FEC will buy 90 plus % of the shares. Securities rules and the TSX probably deem this to be "fair" to current outside shareholders. THis it the possible answer for the Rights, not fact.

[waitingstill]

This makes the most sense. FEC gave us an opportunity to keep our percentages intact. They are putting up more money to keep their percentage intact and will likely increase. If you are bullish, you can also increase your percentage by asking for overallotment shares (of those who do not exercise). I did that last time and got extra shares. This is a fair deal. If you don't want to fork over