Addax Petroleum (fka AXC)

[Krombacher]

Didn't the 8k say they were pursuing litigation finance which means legal fees are paid out of the settlement? In this case, the settlement would be retaining block 4 and therefore proceeds from the sale of block 4 to Total would be used.

I would imagine that if they didn't use litigation finance after all and took a loan from Starcrest then it would be out of the proceeds of the settlement as well.

As for buying shares... depends on what they get for block 4 and what the share price is at the time.

I suspect the market will value the company close to what they get from the sale... and even that will be undervalued because there's other opportunity not being valued at all... like the JDZ.

So let's say they get $50 million, which by the way is only a tenth of what kosmos is valuing it. $50 million/3 billion shares is $ .016 per share. The Company needs some money to continue ongoing operations and pay legal fees... so let's say the buy out is a penny. Would sufficient longs sell for a penny? I don't think so. And if the market is already valuing the stock at a penny then if they wanted to sell then they would just sell to the market. So I guess i'm not following why and how erhc would buy back shares.