RE: No more crappy offers10 Oct 2020 22:12
Look Mike, I feel your pain. You are underwater here and you've lost faith in the board and company. Its not a good place to be.
This hased you to pine for the IOG deal and profess that the board should have accepted it.
I would have loved the IOG deal to have went ahead, but only at the right price. I would have been up on arms if it had gone through at the price they offered. It was daylight robbery.
1.05p equivalent would have meant DELT shareholders would have held around 18% of the enlarged share capital of IOG.
18%!
That's 18% of the potential upside of DELTs assets and 18% of the the potential upside to IOGs project!
What would that have meant?
Say we had sold out to IOG for 1.05p equivalent, translating into shares in IOG valued around 14p.
Say IOG brought the project online, on time and on budget and the share price doubled to 28p. Brilliant, but wait a minute that only translates to 2.1p equivalent.
So let's say that we drilled some of DELTs old assets, strike gas, increase production and the SP rises to 42p. Amazing, but wait a minute, that only translates to 3.15p equivalent.
I hold IOG and I am hoping for bag out of it. But let's say my wildest dreams come true and IOG 3 bagged to 56p. I'd be laughing all the way to the bank! Until I realised I only made 4.2p equivalent from my DELT holding, most of the upside came from the success with DELTs assets and if they hadn't merged I would have had got 8, 9, 10, 11p out of it.
IMO, knocking back that bid was the best thing GS and Co. could have done for us. It was not weighted fairly, gave all the upside to IOG holders and would have meant that long term holders would have struggled to ever recoup thier initial investment.
IMO there much more chance of that going it alone.
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