Well, another opps.... The post reverse number of shares should be 6 million not 9 million. so here are the changes:
Well the much awaited Exile news is out, and it is a complicated transaction. So complicated, i predict krom will never understand it.
Anyway it looks like Exile will acquire certain assets from Oando including Oando's 9% of Jdz block 2 and 78% of block 5 and 12 of the EEZ zone, and some other upstream assets. Exile is issuing 100 million shares of their post reverse shares to Oando to accquire these assets.
At present, Exile has 122+ million fully diluted shares outstanding, so after the reverse about 6 million shares will be owned by present shareholders plus options for another 6 mill at $3 for one year and 9 mill at $4 for 2 years for a potential total of 18 million shares outstanding in 2+ years. Excile may sell 20 million shares in the short term at $3/ share which would put the fully diluted at 38 million shares. Who the buyer[s] of this 20 million is not revealed. Could be a public offering or private placement.
After closing, Oando will have 3 of 7 members of the board plus the Chairman of the board. The management of the newly named company will be granted options for 20 million shares for 5 years and Oando will be issued 100 million shares.
After closing, Oando will have 3 of 7 members of the board plus the Chairman of the board. The management of the newly named company will be granted options for 20 million shares for 5 years and Oando will be issued 100 million shares.
At the end of this process it seems:
1] There will be potentially on a fully diluted basis 158 million shares outstanding.
2] The shares actually outstanding will be 126 million shares.
3] Oando at this point owns 80% and the float is 26 million.
4] ERHC's will own 300,000+ shares plus 600,000 in options.
5] Bottom line, In the long run this will be a good deal for Exile shareholders, but i do not see how ERHC can be more involved unless ERHC is the buyer or among the buyers of the $3 shares to be sold.
Just my Opinion.
Better deals to be done elsewhere in Africa.
