GulfSlope Energy Inc (GSPE)

[smith199]

“Delek will have the option to purchase up to 5% of the company’s common stock upon fulfilling it’s obligation for each phase”. “At a price per share equal to a 10% discount to the 30 day weighted average closing price of common stock preceding the acquisition.” “This option will expire January 8, 2020.” (Source: Gulfslope’s 6/30/19 10-Q, Page 15, Note 3, 2nd Paragraph, lines 13-16)

Analysis:
Phase 1 (Canoe and Tau) of the January 2018 Partnership Agreement has concluded, it looks like Delek still has the 5% option on the table. It would put a multi-billion dollar company (Delek) at round a 27% ownership in Gulfslope. By the time January 2020 rolls around maybe Gulfslope would have released “Good Things” about the next Prospect, thereby increasing the 30 day weighted average stock price.

Opinion:
I anticipate if this comes to fruition, Delek will have some brilliant future ongoing plans for Gulfslope.

Delek includes this statement in all their Regulatory filings under the topic “About The Delek Group”: “Delek has embarked on an international expansion with a focus on high-potential opportunities in the North Sea and North America. Delek is one of Israel’s largest and most prominent companies with a consistent track record of growth.” (Source: Delek Group, Investor, Regulatory filings, choose any one of the most recent filings)

My perception is, a potential 27% ownership in Gulfslope by a prominent multi-billion dollar company is way better than any short-term investors. In fact, I would not mind them owing a little bit more.

Smith