Gediminas Jasionis
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PetroMagdalena Energy Corp (CVE:PMD) (PINK:ALNGD) Stock Price Flatlines

by Gediminas Jasionis Jun 12, 2012
petromagdalena_chart.pngPetroMagdalena Energy Corp (CVE:PMD) (PINK:ALNGD) stopped showing any signs of life after the company's management approved of the sale of business.

A stock that's been so volatile over the whole month of May has now fallen totally silent. Half the usual daily activity still takes place but that looks like a low scale redistribution of shares and doesn't affect the price in any way.

A straight line has been recording for a week now. On June 5 PetroMagdalena announced that the company has entered into a definitive agreement with Pacific Rubiates Energy (TSE:PRE) under which the latter offered to acquire all of the oustanding common shares of PetroMagdalena. The company was offered C$1.60 per share which was around 38% higher than the average market price at the time of contract signing.

petromagdalena_logo.jpgInvestors holding warrants of PetroMagdalena will be entitled to receive C$0.25 per each of them, which also represented a small premium over the last closing price of warrants before the sale deal was declared effective.

The board of directors has unanimously voted in favor of the deal but shareholders will get their chance to express opinion, although the board has issued an urge to vote in favor.

PetroMagdalena will be sold for approximately C$190 million.

Comments (2)

1. Guest
June 13, 2012, 12:12PM

Quotes Same here. Just as the company is turning things around, Management makes a sweetheart deal to sell out on the cheap.

Good deal for them obviously (if they wouldn't recommend this deal), but the long suffering shareholders of Alange Energy get hosed. Unfortunately, we don't get cheap options every year.

My average price was about $3.20 as well. During the 3 years I held the stock, I experienced questionable production misreporting (for which the CEO took the blame - the rest of the team remains), a recapitalization, reverse split and name change.

What can I do except take the $1.57 and move on? I suspect the game is rigged.

2. Guest
June 12, 2012, 06:08PM

Quotes I would need over double that amount to just break even Management is just looking after them selves. Riff

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