Ok I take back my comment about it being only traders exiting. Like you said rob too many cross trades going on. Volumes are however, still minimal in these x trades.
An escrow period should have been taken into consideration.
It's highly possible DBZ are transferring stock across to a separate entity account. The primary DBZ facility thats drawn down on gets a discount to the VWAP when the bond is drawn down on and shares issued. They then transfer the issued shares across to the separate entity on market by pushing cross trades hence, DBZ get the shares cheap, transfer it to an associated "entity" cheap and ultimitely control what we are seeing. This gives them the subsequent ability of holding alot more stock in the company at a much cheaper price.
If DBZ were to let it just run and hold onto their initial issued stock with no trading then the sp would be substantially higher and when the bond facility is drawn down upon they would be getting less shares for their money.
Not a bad way to manipulate the market if you can get away with it!
This isnt the end all though - keep in mind the company is considering issuing shares to shareholders in the same fashion to raise capital. The only problem to this is that it takes alot longer to go through and for central to access the cash. It wouldnt surprise me that we continue to see bonds drawn down on until they have more than enough cash in the bank - and a share issue to shareholders to follow. Probably not this year though.
Would have to agree that the amount of cash in the bank was nowhere near enough to fund the campaign. After the first 2 or so wells are drilled you could expect to see a few more tranches pulled down on (if not in the near future).
Further to that, if oil is hit in the first 2 wells, the next few months will see a need for rapid staff expansion and much higher administration costs.
Financials need to be managed very carefully here.
CTP Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
