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Somebody assumed that before and as longer this goes as more likely it looks. I wouldn't be surprised, if the financing of Tomco is somehow connected with the Viston takeover of Petroteq majority. It could be a clause in the deal or Viston is the interested party and would also want to control Tomco one way or another, but only if it controls Petroteq.
The extra money for Cantone could be a way for Viston to pay Cantone without any legal risk. Question is payment for what? Maybe payment for Cantone to buy up all available shares until the very last day and maybe even after, so that Viston reaches the 90% goal. I believe the share price will stay low, until the CFIUS approval is announced. Without investigation CFIUS should approve until July 7th. With investigation, until August 21st. There is of course a small risk that CFIUS requires mitigation for some risk to the "national security" and Viston might be not willing to jump through this hoop. But, overall there should be a 80-90%* probability that the deal closes in July/August. But "the market" sees only a 30% chance for that. However, it seems Cantone cannot buy until the announced private placement closes. I assume as soon as he continues to buy, price will jump towards CAD 0.35.
Why do we care? If the deal closes, Tomco should be revalued significantly. I think at least 10% of the $470MM Viston will have paid for Petroteq. Anything below would be absurd.
*) based on historic rates for deals abandoned due to CFIUS
If Petroteq is worth to be bought out for $500 MM then Tomco should be worth way more than $10 MM. My guess is $50 MM. However the main risk seems to be, that the new market cap is reached with heavy dilution. Therfore I see it as a hold, until we know more about the financing or see insider buys.
This is indeed old and known. The warning was somewhat legit as many have tried and were unsuccessful. I believe, if they had partnered with Valkor they would be bancrupt by now. But Valkor helped them to make crucial improvements to make it economical and scalable.
The Feed study was then third party verification:
https://ir.petroteq.com/news-presentations/press-releases/detail/386/petroteq-energy-announces-completion-of-feed-study-for
I always wondered when more people would realize that at current prices, Tomco has a better risk reward ratio than Petroteq. Just using 60 to 90 percent probability that Petroteq is bought for $500 million...
You are 100 percent wrong here. I believe this is exactly what happened here and I would do the same: Limit my downside and eliminate the existential risk of the 50 million debt portion, but retain most of the upside optionality with my equity position.
As one or more posters spread fear, that Tomco could issue cheap shares before the FEED is finalized.
Here are the facts, why this is highly unlikely, because it is simply not needed. Text shortened:
Use of Proceeds
In order to facilitate the Company's future plans for Greenfield, which assumes successful POSP trials and the completion of the FEED study, the net proceeds of the Placing of approximately £3.2 million will be specifically utilised as follows:
· US$0.5 million (approximately £0.4 million) will be loaned by the Company to Greenfield (the "Loan"), which together with the US$1.5 million already provided by the Company to Greenfield to upgrade the POSP, which as set out above, secures the new Petroteq Licence.
[...] The Loan [...] has an interest rate of 6% per annum payable [...] as the principal of the Loan is repaid.
The Loan is repayable on the second anniversary [...]
· Approximately £1.3 million will be utilised for the Group's general working capital purposes over the next 12 months and beyond and, if required, providing further funding to Greenfield; and
· Approximately £1.5 million will be retained by the Company with the intention that it is used, inter alia, to facilitate the securing of a site by Greenfield for the first proposed commercial 10,000 bopd plant using Petroteq's Oil Sands Technology pursuant to the Petroteq Licence.
Once a suitable site has been identified, the Company intends on providing a loan to Greenfield, which will be on the same terms as the Loan, which will be used to secure the site.
Whilst there is no certainty that it can be secured, a potential site in Uintah County, Utah, USA, has been identified by Greenfield that the Board believes has a number of key attributes that make it attractive. These attributes include, inter alia, the required infrastructure to enable construction to commence quickly, the required permits, and the land containing appropriate resources. [...]
Whilst the Board is confident [...] the commercial scale plant is suitable to the recovery of oil from oil sands, in the event that the outcome of the trials and tests are not as expected resulting in the Company choosing not to proceed with the securing of a site [...]
Source: https://polaris.brighterir.com/public/tomco/news/rns/story/x8lddor (16 November 2020)
Please note "that the outcome of the trials and tests" were obviously "as expected" as the company did proceed with securing of a site "for the commercial scale plant".
The above also shows that there is ample cash until the FEED study is finalized and financing has been secured for the "commercial scale plant".
If anybody disagrees, please post facts and your source.
- First Oil Sales from Asphalt Ridge after Plant Mods & Consistent Production
- Third Party Engineering To Certify Commerciality of Tech
- Sand being Evaluated for Sale by Local Drilling Fluid Company
- FEED 10k near Completion!
https://twitter.com/PetroteqI/status/1403377880697028610