A familiar story I see
I had a look at the pearl agreement and as per usual with a PL deal the exit strategy is written in there forecasting the demise of the deal with in a month or 2 .....The pearl guys can buy back for + $300k, thats after they have used CTR's $ to test product, pay bills, and themselves and got issued confetti shares.
e)
Buyback Option: in the event that the Company does not complete the acquisition of the remaining 60% shareholding interest in Pearl, the Pearl shareholders will have the right to buy back from the Company the 40% shareholding interest in Pearl which the Company acquired under the Stage 1 Earn In for $3,000,000 plus interest accruing at 10% per annum;
So lets look at a PL deal:
LAR - drill 2 wells, complete and get within $1 mil of obligation spend and pull the plug giving whole project back and A#5 is never announced flowing which it obviously is.
Texas - drill 1 well, complete and (allegedly) handed it over to the provider of a "loan" which who knows provided before test results are never provided.
Pearl - as above
Is it just me or are we seeing a familiar pattern here? Millions of dollars chewed through in the process.
He's a smart guy, he would have been planning his exit strategy a few years ago..
IMO PL owed $ to all he did deals with and structured the deals accordingly, the CTR missing $ just another strategy to execute e)
Buyback Option, Si's will get whats left.
Lets see what CTR board does?
(20min delay)