Long Run Explor Ltd Ord WFREF

Similar Arbitrage situations

[Bookends]

Hello All,

Anyone knows some similar opportunity of a canadian compagny being purchased from Chinese in the past that either succedeed of failed? Just trying to analyse what happened in these other situations and the time frame of devellopments. 

To me, this situation is similar to the ongoing arbitrage case of sunridge gold corp (SGC)... Feel free to check it out and do some due diligence.

Regards all.

[QUANTUMJUMP]

Alter NRG was taken over by a Chinese company also , but like your example the assets were not in Canada In this market there is IMO zero probability they will not approve

[wilwal]

I would suggest looking at the data on Sinoenergy's last purchase if it is still around. The arb discount here is quite interesting.  The smart money continues to build in a huge discount for the risk of not closing.  It's getting obvious the discount is mostly due to the risk of not closing as opposed to the time discount as the share price hasn't changed for awhile.  

[QUANTUMJUMP]

They put the final $10 million of any breakup  into the escrow pot , my concern was Sino walking not , not getting approval On March 8, 2016, Long Run was advised by the escrow agent that the purchaser deposited an additional $10-million into escrow following the receipt of Long Run shareholder approval. The arrangement is currently expected to close in late April, 2016, following the

[Dannygo]

If local purchase, it will be half cash half shares. This is CASH from Santa Claus. I'm Chinese from Hong Kong. Ten years ago, it's not possible for Mainland China to buy oil co. from North America. Now is the only chance when crude oil price is low. They need LNG badly for winter to replace coal. Due to political (disadvantage) reason, China usually pay higher. Lenovo bought IBM PC is one

[Bookends]

Thanks Quantum ans Wilwal, Thats exactly what I needed... I'll check out their case when I get a second... Look at the spread and such to get an idea. The time lapse for the required receipt and approvals. If anyone has similar cases, please send me the info. Especially the ones that FAILED!  WIlwal, my position in LRE was aquiered with debenture in early January. I've enjoyed

[Bookends]

I meant to say :  However, I do NOTTTT like the risk if it does fail. We'd be looking at an immediate 80+% drop if not 100%!

[wilwal]

That is exactly the reason for the high discount in my opinion. It's not that the probability of closing is not high.  It's that the tiny probability of not closing is devastating.  In normal circumstances, the risk of not closing might be a 10-20% loss in share price. For LRE, it goes to 80-100% loss.

[QUANTUMJUMP]

Just jump out now then , It actually sounds like you were just trying to soft pitch that other play

[Bookends]

Just trying to share an opportunity. But frankly, I really don't care where you guys are. I learned about SGC from someone else and figured it made more sense. So trying to share back. I'm still not about to jump out of LRE anyways... I like to have 2 deals rather than being all in on 1. Just sharing my opinions... Do what you want with it.