Edge Res Share Discussion Threads

[adverse] 05/4/2016 10:27

From the Condensed Interim Financial Statements
For the three and nine months ended December 31, 2015
Released Feb 29th 2016 on SEDAR

...As per Note 5, the Company had a revolving credit facility with a $17.0 million limit and as of December 31, 2015, had only drawn $7.7 million on that facility. However, the Company’s “senior debt to cash flow” ratio was incalculable given the Company’s applicable negative cash flows from operations, thus the amount available under the credit facility is effectively $Nil as at December 31, 2015. The review date for the credit facility was July 31, 2015, and as of February 29, 2016, the Company’s bank has not completed its review of the facility. The Company has provided all requested information to the bank on a timely basis. It is not possible to predict the possible terms the bank may offer for a future facility, but due to negative cash flows from operations, Management believes that there will be a significant reduction in the amount available under the facility, and that the bank may be in a position to take immediate severe negative action against the Company. The bank could exercise its right to request full repayment of the loan, or to install a receiver, or offer less severe options to the Company. Management has had discussions with the bank regarding various potential options to continue and/or restructure the loan facility, although nothing definitive has been determined at this time.

[determined] 04/4/2016 21:05

Edge halted in Canada.

"pending an announcement"

[1628386] 02/4/2016 22:27

heaven above

I get the message, but you are harsh

For example when I was invested in 2014, the bank facility was miss sold to shareholders IMO. It was suggested in the RNS to be a large facility but later we found it was restricted to ratios and covernants (not properly disclosed by EDG)and actually there were no extra funds available at all. That's when I sold but only due to my experience in banking.

Shareholders were misled IMO and not everyone has banking experience.. Most shareholders rely on CEOs to be honest and transparent in their communications

[andy] 02/4/2016 22:03

Adverse,

Excellent posts, explained in layman's terms.

[heaven above] 02/4/2016 21:12

shareholders don't deserve better as it was obvious from looking at the balance sheet for at least the last two years that the equity was basically worthless. note how even the interest due on the loan was rolled up and compounded not paid off

what did shareholders expect to happen?

blame yourself not others. the ceo can talk up the prospects for the business but it's not his job to place a valuation on the equity, that's up to you.

[1628386] 02/4/2016 18:53

Whats a mess!

This is a worse basket case than CAZA.

At least with their similar dilution, they became debt free, which enabled another debt facility to be negotiated .. Edge are still indebted to the hilt and in deadlock with the bank, entirely at their mercy with no hope of an increased borrowing facility.

You Shareholders here have been supportive all the way and deserved better than this ... I do hold Brad entirely responsible because even up until recently he was talking of being a predator and well placed to take advantage of the low oil POO environment - with a backer lined up.

I bet People invested more on the back of that fairytale ... He should be ashamed of himself as he would have known the intentions of this creditor

[mark10101] 01/4/2016 22:02

Just calculated I would need a market cap of over $500m to get back to my core investment point so I know this is a lost cause given Brad failed to deliver any value in the good times let alone sub $40 oil....

[mark10101] 01/4/2016 20:22

Just reread the announcement and I am wrong, for some reason I had a dilution price of $0.01 lost the decimal and makes a lot more sense and why the price has traded at $0.005 on TSX prior to the announcement and post the announcement with the looming 20:1 consolidation it ties in at the agreed price of $0.1. Amazing how the market know these things weeks before announcements...

So I am wrong on that point but not that wrong on the overall situation. The $12m at $0.1 to aquire 120m shares sets the market cap at approx $13m. I would think that the market would be happier that we have resolved $12m of debt so possibly a decent rise from here. But with a higher MCAP any gains will be capped and useless for any long term holders.

[adverse] 01/4/2016 20:04

Situation now: 160m shares @ $0.005 so market cap = $800k

After consolidation: 8m shares @ $0.10 so market cap = $800k

After dilution: 128m shares @ ????? who knows what price?

Why do you assume the shares will trade at $0.10 after the dilution? They will adjust their price BECAUSE of the dilution. If the market judges the company still to be worth $800k as before, then the shares will adjust down to about half a cent again - except you've got twenty times fewer of them!

[adverse] 01/4/2016 19:53

Where on earth do you get this 1c figure?

[mark10101] 01/4/2016 19:32

Adverse, what you have written is how I have interpreted it unless you are saying we will be priced at 1c after the dilution and 20:1 consolidatin?

If not then we as share holders receive the equivalent of 1c for our shares when on TSX (twice where they are currently trading) however the difference is will be we will have a MCAP of $12m instead of £300k when we left AIM, robing us of an opertunity of a 20 bagger opertunity to recover some of our loses when oil recovers. However it is quite possible with the debt cleared and when Brad justifies his wages we get some sort of rise from here.

[carpadium] 01/4/2016 19:27

Spot on adverse. Their friendly 'road builder' shareholder, due total repayment in 2017 could only ever get any value in EDG, if at all possible, by swapping debt for equity ... he has even 'donated' a further CAD$ 600K to assist survival, maybe round the number up to a whole. Problem of course is he's not an oil man, he's got $12m wrapped up in an industry he has no understanding of but he's taken this course because there's no other possible route to, at best, get repaid.
Why would anyone invest now in a company 93% owned by a chap who's clearly trying to recoup a duff investment!?

EDG still remain indebted to their bankers, and with re-payment on demand, always at their mercy to the tune of approx $8m. The further loan of $600K will barely result in a break even quarter. Their income from drilling is only going to decrease without fresh investment and Canadian capital markets are tightly closed. Wouldn't like to guess how they're going to emerge from this mess, if in deed they can but, even though I've lost a life-changing amount, I bear BN no malice whatsoever. It remains my poorly-thought-through, plus circumstances, decision and really hope EDGE, under Brad, in time finds profitability.

[adverse] 01/4/2016 18:26

Also, bear in mind that the creditor will now own 120 million out of the 128 million shares in the company. That's the 93% being mentioned. This person will now run the show!

[adverse] 01/4/2016 18:16

Oh dear! I'm finding it painful to watch you, mark10101, as you search for reasons to be cheerful about what has just happened. You don't seem to have understood the documents at all.

Two things are in the pipeline: consolidation and dilution.

Consolidation is irrelevant to your shareholding. If it's 20 to 1 then the price of the share multiplies by 20 but your holding is divided by 20. So no change whatsoever. 20 shares at 1p (say) becomes one share at 20p.

Because EDG is currently trading at half a cent ($0.005) the new shares will, assuming no change in market cap, trade initially at twenty times that amount, or ten cents ($0.10). But remember, you are holding twenty times fewer of them!

EDG is in serious trouble with debts, but mainly to the tune of $12m to one person. He appears to be exercising his right to swap the debt for equity. So he wants $12m in shares. The new shares are assumed to be worth ten cents, so he wants 120 million new shares.

As of now there are 160 million "old" shares in existence. After consolidation, they become 160/20 = 8 million new shares. Those 8 million new shares, which account for the entire company, will be ADDED TO by the 120 million created for the person mentioned above. So your shareholding, your part-ownership of the entire company, which was a fraction of 8 million, at a stroke becomes a fraction of 128 million. Whatever assets the company has now have to be shared out over a MASSIVELY increased number of shares. Your holding has been diluted by 128/8 = 16 times.

Except that the company has negative net assets anyway, so there's nothing to share out except more debt. But the oil price may recover, then the assets would be worth something again...

[mark10101] 01/4/2016 08:37

Anyone had a chance to read through the documents or spoken to Brad. TSX is trading steady so it looks like if the refinancing happens we will return at $0.01 equivalent, with the new consolidated price of $0.2and a MCAP of $12m. So no scope for a 20 fold rise to get back to my entry but possibly 2-3 fold rise.

[mark10101] 29/3/2016 17:18

So a bit like CAZA where we return as a approx $13m MCAP (CAZA $40m odd due to larger debt consolidation) after the new shares are issued and consolidated. We will have reasonable value still, essentially the devaluation was done earlier (by a knowing market) and we will come back higher than when we delisted, with our new backers clearly expecting greater returns going forward?

[sleveen] 29/3/2016 16:23

Hi Mark,

Read to me as consolidation first then, debt for equity swap second.

[mark10101] 29/3/2016 15:49

Where is everyone, thought a few were hanging on until TSX like me?

If it is the best case scenario we have someone taking a 93% stake at double the current TSX price,mwith the confidence from our backer we are worth a lot more going forward.

[mark10101] 29/3/2016 10:05

It seems quite a similar deal to CAZA, the good news is as ever with these things the market insiders knew the deal before we did and have already priced us accordingly. Also once CAZA came through a deal like this there was a five fold rise so may still be worthwhile making the trip to ISDX.

[mark10101] 29/3/2016 08:33

Lots to digest on Sedar. If I have read it correctly we are giving the company to the creditor. 93% of share capital to them.

Also turns out Brad is not with us on this one, only has 1% of the company as of delisting, a lot less than some on here believed....

If there is a possitive, again if I have interpreted it correctly, the conversion will be done at $0.1. The element of doubt is this could be after the 20:1 consolidation....

Will be interested to get others views on this.

[andy] 16/3/2016 11:20

As I said before, it was easier, and possibly cheaper, to sell on AIM and buy back on the TSX.

And no long wait periods either!

[sleveen] 15/3/2016 17:36

RE: Edge Resources.

Thank you for your request to move Edge Resources to the Canadian market. To process this request there is a £65 fee.

Please note this is not a TD fee this is a registrar fee.

Please confirm how you wish to proceed and advise when the fee is on your TD account to be debited



Has anyone else been asked to stump up £65 for the Canadian registrar?

[carpadium] 15/3/2016 17:25

Here's a useful site for those intending to buy, top-up, trade EDE in the future.



If and when I think EDE is once again invest-able then I think I would choose
AJ Bell YouInvest as the broker with the most reasonable charges (use the compare feature offered on the above website).

For the time being, over and out. GL to all who transferred.

[jamesiebabie] 15/3/2016 06:13

Please note the charts in the header are now TSX prices including the long term chart; actually I'll bring that out of the scroll as there is more space and relevant.

[jamesiebabie] 15/3/2016 05:44

I'll remove the UK charts and bring the TSX to the fore.