Pilgrim Petroleum Corp. (PGPM)

[downsideup]

Well, yours will not happen...

Mine was based on numbers that assumed the reverse at ACLE had already taken place...

It also won't matter at all in the value of what there is to be distributed... to have PGPM give a PGPM share dividend. If they hand out more PGPM shares, that won't make any more ACLE shares magically available, so it would only have the impact of requiring more than 1000 shares of PGPM for each 2 shares of ACLE by the amount of the dividend.

I think the ONLY dividend you are likely to get from PGPM will be a distribution of the ACLE shares they hold now.

I don't know yet to what degree it is likely that ACLE will try to buy out the PGPM shareholders... but I think any such effort would need to be conducted separately from the efforts to settle accounts, between PGPM and Lariat in shares or notes of ACLE for the Lariat note, or between PGPM and ACLE for the ACLE shares and ACLE note that PGPM holds from the exchange for assets that were allocated to the new company directly.

Best case looks like it is 2 fully diluted (post reverse) ACLE shares for each 1000 PGPM shares... or $20 per 1000 PGPM... at todays market price for ACLE, based on the 12.5 million ACLE shares held by PGPM (reduced to 1.25 million by the reverse) and the $40 million Lariat note. There will be some potential to have that value in shares to be distributed increase as a function of the nature of the deal with Lariat on the note, and some potential for an increase based on the $3 million ACLE note, a bit more, perhaps, based on a future deal to buy PGPM.

I don't expect that the current market price for ACLE will be sustained following a distribution of ACLE shares to PGPM holders... so the $20 per 1000 PGPM is likely NOT going to be what you get in fact if you sell when you get ACLE shares... without there being some serious progress made that provides meaningful support for the ACLE share price.

The timing matters... the real value of the assets matters... and their ability to make ACLE perform in ways PGPM could not will matter most of all.