Post by
MRSPEC on Feb 19, 2014 2:12pm
This is why we are moving north imo
Redhill is moving because of its exposure to the High North Oil play. The simple math is that Redhill has 18.5 million shares out, under 24 million fully diluted. It has about $2.3 million in cash, some oil land that High North must and will pay $2.2 million for by April, 6 million shares of High North, worth $4.5 million, 1 million HN warrants at 50 cents and a 2.5% royalty on 4480 acres in the middle of the high north play.
Not counting the royalty or any other assets, rhr’s value is 48 cents a share. There is plenty of upside from the HN stock holdings and the royalty has further value.
Redhill will trade much higher as this HN play unfolds.