Zargon Oil & Gas Ltd ZARFF

post conversion

[pablo87]

Zargon having no debt net of cash will be in catbird seat to merge, be acquired, trade assets. Most small players have lots of debt, ZAR has $50MM equity. So getting to that point is golden opportunity for this company, hopefully CH makes a great deal.

[hawkowl1]

Interest costs saved with Deb's converted amounts to $4.50 per boe produced..  all of it going to cash flow.  With no debt it certainly will be attractive to a private company who wants to go public .  Along with Zargon's significant tax loss credits which are significant. Will not be surprised to suddenly see a lot of interest when this conversion happens.  A NO

[Philbert77]

so are you both debenture holders? 

[funfacts2018]

So, let them save their cash and pay the interest in shares, which they are entitled to do anyway. Frankly, if they could have drilled their way out of this mess, they have had plenty of time to do it before now.  Is the company a better buy now than it was in early 2017?  I don't recall management rejecting any takeover offers.  So I'm not exactly buying the notion that

[funfacts2018]

Your hypothetical share price made no sense to to me, but it took a while to figure out exactly why. Currently there is roughly $42 million in debentures and 31 million common shares.  A hypothetical buyer could offer a 20% premium to shareholders ($0.12) and a 2% change of control premium to the debenture holders, acquiring the company for a total cost of $46.6 million. If this