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Bullboard - Stock Discussion Forum Zargon Oil & Gas Ltd ZARFF

Zargon Oil & Gas Ltd is a producer of oil and gas. It is engaged in the exploration, development, and production of oil and natural gas in Canada and the United States. The company works on three phases of oil reservoir exploitation which include Primary recovery, Waterflood recovery, and Tertiary recovery. Its portfolio includes Alberta plains north, Alberta plains south and Williston basin... see more

GREY:ZARFF - Post Discussion

Zargon Oil & Gas Ltd > bond investors............
View:
Post by rad10 on Nov 21, 2018 3:42pm

bond investors............

A lot of people see us as passive creatures.........  believe me nothing could be further from the truth.  Check out the armwrestling with Yellow media, IBI group, fortress paper and Sherritt.........over the last few years.

This is an opening offer.  It will not pass - period.  They will need a 66% majority and there is no way it will pass with a current share price of 6.5 cents................  Why on earth would we allow shareholders to retain more of the company than is absolutely necessary?  Why would we calculate our interest liability on a share price 40% higher than what the market will currently bear..................

Look at the overall enterprise value, the capital structure and the potential CCAA recovery on the assets.  There is only 3.5 million US dollars in secured debt on the US assets......................  The recovery alone is more than 40 cents on the dollar which is where the debentures are trading. 

More than happy to sit this one out.............
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