Grifco Inc (GFCI)

[best2listen]

BBB, you misunderstood the PR

You post:

"For starters, each traunch considers a grand total of 10 gas wells, or 30 wells for all 3 traunch."

The PR says the warrants can be converted into "Participation Shares entitle the owner to a mandatory dividend of 33 1/3% on the Net Royalty Income from gas production realized on a total of 10 certain gas leases in Crockett County, Texas." Should be more than 1 well per lease! The difference in the series is the time on the warrants 2,3,or 4 years.

The conversion provides money to further develop the leases, as I read it, drill more wells. "Warrant Holders must convert in minimum traunches of $400,000 per gas well to be spudded."

These are Rule 144 warrants but have a registration rights agreement attached. You can (God help you) convert a series A traunch for $400,000 (2 million warrants at 20¢ ea.). I'm not sure how the income is divided as the wells are drilled and brought in to production. Seems that the longer you wait the more income will be generated from the leases as more wells are drilled.

Nice to see that I'm not the only one confused by this deal

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