Ed...at first blush the math seems reasonable. The problem with that is there are certain variables that cannot be valued.
1. What is the perceived discount to the future market cap of XBOR with a hefty cash raise at such a low price? The dilutive aspect to raising cash sub $1.00 would only create severe overhang that likely would result in the inevitable "death spiral" that accompanies such raises.
2. How likely is it that XBOR could even raise cash at all? RDMP was the largest investor in the last placement by far. RDMP has pockets behind it whereas XBOR does/did not.
3. The technical team and resources behind RDMP is far beyond the resources that XBOR had. XBOR just played along with AFE's where they could. RDMP has comprehensive development strategy for not only the XBOR acreage but their's as well.
The best way to get comfortable with this 2:1 exchange is to look inward at where XBOR would be now on its own. Is scratching and clawing just to participate in AFE's really what we would've wanted to do for the foreseeable future or is it smarter to bring in a commitment to develop the acreage for the benefit of all involved? XBOR was severely challenged by its limitations BUT the acreage owned is highly prospective and a virtual goldmine. Who is more likely to unlock the potential?
Unfortunately the thought of a class action lawsuit is moot. The potential participants would be XBOR shareholders. The exchanges that have taken place were consensual and entirely optional. The result is that RDMP owns between 80 and 90% of XBOR's outstanding shares now. Typically the law allows for merger when a holder has a super-majority. Not sure who's left to join you but I would gladly take 5:1 if you can pull it off!
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