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GeoGlobal Resources Inc. Message Board

  • centralstationamsterd centralstationamsterd Dec 26, 2012 11:20 AM Flag

    More selling

    By Israel Land Development Company- Energy Ltd. filed today

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    • Another 250,000 shares sold by ILDE at $0.058

      • 1 Reply to joyfull888
      • Our new friend Crede will have to bring in 2-3 friends for the ride to take in the ILDE position

        If ILDE does a slow-down sell program, the share price may rise regardless - it still depends on GGR making a transaction to gain cash. It looks like ILDE is not currently pushing down the price, there are significant bids at a modest discount to market parice, ILDE could simply sell into those if they want to make urgent trades

        If GGR is able to make a large enough transaction, they can buy back the ILDE shares and retire them

        ILDE will have some sort of profit on the equity, GGR will have taken a loss of the ILDE share transfer, but GGR earned a sufficient amount back as the operator on Myra/Sarah, and GGR also gained the deepwater operator credential - will have to leverage that ability

    • merlin1990@ymail.com merlin1990 Dec 26, 2012 12:23 PM Flag

      but at least Crede CG II, Ltd is buying these shares that Israel Land Development is selling, right?

      Still the problem is the upcoming delisting!!

    • merlin1990@ymail.com merlin1990 Dec 26, 2012 12:19 PM Flag

      and they changed the warrants exercise price from .30 to 0 . Are they going to sell those warrants too? This sucks! I average at 10 cents, and I don't have the guts to sell and move on...

      • 1 Reply to merlin1990
      • Prior to Dec 20, ILDE owned 16m warrants with anti-dilution rights to them - ILDE had previously held warrants to go up to 50% of GGR (if you include the July warrants at .26 which they didn't execute), and the new fundraising would have further disrupted that ratio

        Since GGR needed to issue more equity, they needed ILDE to exchange the warrants they were holding - This was done on Dec 21

        ILDE now has 44m warrants with exercise of .067 or less (replacing 16m with exercise price of .30) ... the 'or less' part is dependent on the average trading price, volume adjusted, for the 3 weeks beginning in February (there is an exchange holiday in there, so it works out to 14 trading days) ... these are 'substantially similar' to the Crede warrants - so I suppose they also have the 5 year expiration, or are callable for cash if GGR trades .101 or higher for 4 weeks straight.

        Once the warrants are callable, GGR has the option to buy them back with cash, paying "Black Scholes" calculated value (which will be substantially the same as the stock price minus execution price, once well above .10)

        Basically, if GGR is able to sell a property, get an asset-backed loan, and/or get a well turned on that will internally raise a bunch of cash before the third week of Feb, they can do a share buyback to get the equity price up for a month, and then call in the warrants on a cash basis - buying back 44m + 13.8m = 58m x (stock price - .0804) = [if stock is at .15, buyback will cost .07 , so $4m] and the outstanding share count will remain at 148m

        After the third week of Feb, the ILDE warrants are potentially repriced, however still capped at 44m shares. GGR would get less funds from conversion. ILDE would probably not bother converting, unless they completed their own fundraising, and wanted the ~48% of GGR as a long-term strategic holding.

        They seem to be on a slow-burn sell order this week.

 

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