Our market cap at the moment is around 30 million$. Of this, at least 50-60% is held by funds. So say 14 million$ is available for pi's to trade. After the new money is raised (about 170 million$ for the loan notes will be provided by institutions) our total market cap will be about 200+ million$ and,of that, only 14 million$ will be in the hands of private investors. Doesn't that mean that if the market likes this deal there will be a huge squeeze on the measly amount of shares still owned by the pi's?
only prob being sle isn't selling barry sobeit..but they are raising $200mill..paying off Tosca and associated lenders!!!..and retaining the cash sweep as income by what I can see which will run into mega multi mills..
The Company is therefore planning to undertake an equity fundraising of at least $200 million (the “Placing"), the net proceeds of which will be used (subject to any necessary shareholder and regulatory approvals) to: purchase the Loan Notes from Toscafund; repurchase the additional $100 million of loan notes required to complete the Remaining Transactions; fund transaction costs; and provide working capital to the Company.
The Company has concluded that shareholder value would best be obtained by San Leon becoming the ultimate beneficial owner of the entire $173 million of Loan Notes. This structure, if completed, would provide the Company with highly material cash flow from three sources:
coupon and capital repayment of the Loan Notes, with associated cash sweep; ( As a result, San Leon will have security over the acquired assets and it will receive income from the notes (they pay 17% per year and mature in March 2020)............so 17% on $173mill pa...millions to sle..
cash flows from ordinary dividends associated with its indirect 9.72% economic interest in OML 18;
and revenues associated with the Company's right to provide drilling and workover rig services to Eroton in its capacity as the OML 18 Operator.
................... plus nova seis!!..detail to be released no doubt!
Oh plus..the service contract will again be worth multi millions as to increase the production to 100,000+ the only way to do this is to drill etc..so a lot more wells etc..so payments to sle.
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