I posted this last summer and it's worth repeating again, especially in light of how our useless management/board of directors allowed Frontera to steal more working interest in Corentyne for almost nothing.
Couple notes:
- The numbers below are based on online press releases for major acquisitions.
- I also took the liberty of converting the shares acquired by Pacific (now Frontera) from 2011-2013 to today's converted 10:1 split (as per May 2013).
- The final share count below only differs about 4 million (non-diluted) from the latest press release, meaning some shares likely got purchased in minor amounts and never publically disclosed (likely exercised warrants).
Shares Paid Date Price Paid (CAD)
5,870,000 $41,104,000 Oct 29, 2011 $7.00
8,571,000 $30,000,000 May 28, 2012 $3.50
35,000,000 $35,000,000 April 26, 2013 $1.00
5,714,285 $1,571,428 Dec 17, 2018 $0.275
12,181,000 $60,905 Mar 13, 2019 $0.005
101,316,916 $25,319,229 Mar 14, 2019 $0.25
40,000,000 $11,600,000 Sept 25, 2019 $0.29
45,083,314 $73,596,618 Nov 1, 2021 $1.63
253,673,515 $218,252,180 $0.86 (rough break-even)
Couple Notes
1) Clearly, CGX's old management team from 2011-13 derived far greater value from Pacific for shares in the company... the current management team and BOD is truly a bunch of useless stiffs. Like hell, Frontera since 2018 has only paid ~$112 MM CAD for over 204 million CGX shares. Yes, I know CGX was very distressed before Frontera showed up... but the fact CGX has literally given them the entire company for literal pennies on the dollar is pretty pathetic... especially in light of the Guyana/Suriname success in the Golden Lane over the past couple years.
2) Its clear Frontera could care less about maximizing CGX share price value. Other than in Nov 2021, Frontera has paid very little for CGX shares and has literally acted like a loan shark. For Nov 2019 shares, Frontera literally had to pay more money just cause Kawa-1 was actively being drilled and it was near impossible to low ball a price below $1. But even then, share price was over $2 before they made the loan at $1.63.
3) At this point, Frontera owns close to 80% of CGX and their value (going back to 2011) has not increased very much (at least in terms of break-even).
4) Based on what I can see above, I think the entire goal of De Alba/Frontera all these years was to increase their share count in CGX at the lowest price possible so that they could keep ultimately increase their Working Interest in Corentyne (since they could in essence veto any third party deal that actually would have benefited CGX).
Current takeaway: Frontera has played CGX for a bunch of losers. The true prize is Corentyne working interest. Frontera could care less about their CGX shares... they will get that money back eventually... but the real return will be selling their share of Corentyne for multiples compared to what they paid for it from CGX.