Shareholders stymied, page-27

<sojourner
By way of example, here's how CVN has raised money over the years:
- 20 November 2013 $12m at 6.4c
- 11 May 2018 $20m at 13c
- 14 Feb 2019 $50m at 33c
- 25 July 2019 - $79m at 39c
/sojourner>
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@Sojourner you have a good point. I don't understand why FAR has not been able to demonstrate and communicate to the market that they have been adding progressive value during the last five years and raise at higher prices. As indicated below, the cash raised from shareholders has added up to $279, which is actually more than the current market cap of $273m...

Far Equity Raisings:

02/06/2014 $8m at 4.7c

20/10/2014 $46.7m raised at 11c

23/10/2015 $40m raised at 8c

15/04/2016 $60m raised at 8.5c

06/04/2017 $80m at 8c

02/05/2019 $45m at 5.5c

Total: $279m

So if management had simply put the company on care and maintenance during this period, and invested the $279 at 10% (perhaps by lending to some other oil company wanting to get into production) they would have (back of the envelope) about $400m in the kitty for shareholders (plus the other non Senegal assets).

and now a combination of huge dilution at 4.25c and usurious interest rates when oil prices are quite high...

Jan/2020 $176m at 4.25c & $150m (or $200m?) Junior Debt @ 12% & ($350m (now $300m) senior debt at 10%

= $676m

The only way FAR can redeem themselves from this situation is if it becomes clear in coming weeks that there is some master strategy in place which will generate shareholder value (PE, funding alliance, sale etc).

Otherwise FAR should IMO try to sell Sangomar for whatever NPV they can get ($500m?), give shareholders a special dividend, reduce salaries and keep $50m for future exploring. It is clear they are quite good at exploring, not so sure about the corporate, finance and marketing side of things.

I am unsure how I will vote on 16 Jan at this point.