Call 800 665 0411 to learn about our services for your stock

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS

Share on StockTwits

Energy Co. Has 205% Return Implied

Source: Stephane Foucaud


October 19, 2023 ( Newswire) Warrants have been exercised for shares of this energy co. These transactions should improve the cash resources of the Canadian oil and gas company and eliminate related overhang on its share price, noted an Auctus Advisors report.

Arrow Exploration Corp. (AXL:TSX.V; AXL:LSE) just saw its two largest shareholders and management increase their stake in the company, reported Auctus Advisors analyst Stephane Foucaud in an October 18 research note.

"We view the exercise of warrants and the resulting increase in interests in Arrow as a positive," Foucaud wrote.

205% Return Implied

Following the news, Auctus reiterated its £0.55 per share target price on the Canadian oil and gas company.

"We had already assumed the exercise of all the warrants," noted Foucaud, referring to its financial estimates on Arrow.

In comparison, Arrow is currently trading at about £0.18 per share. From this share price, the return to target reflects a potential return for investors that is significant: 205%.

Upside to Transactions

Foucaud presented the two major benefits of the warrants being exercised. It increased Arrow's cash resources. Also, it dealt with the existing overhang on the company's stock.

"The concern of investors having to sell shares to exercise their warrants had created an overhang on the share price that should dissipate with this announcement," the analyst wrote.

New Shareholder Structure

Foucaud provided the details of the 34.3 million (34.3M) warrants exercised in exchange for common shares in the energy exploration firm.

Of these warrants, Arrow's largest shareholder, Canacol Energy, was behind exercising 18.4M of them and now holds 60.1M shares in Arrow. This represents 21.2% of Arrow's issued share capital.

Similarly, Tim Leslie exercised warrants, 10.2M of them. This more than doubled his number of Arrow shares to 17.8M from 7.6M and took his portion of issued share capital to 6.4%.

Together, members of Arrow's management exercised 5.7M warrants and now hold about 6% of the company's issued share capital.

"Management has taken aggregate loans of CA$675,000 with Arrow that we understand is to fund the exercise of the warrants," Foucaud wrote.

New Well-Spudded Early

In other news, Arrow just spudded the Rio Cravo Este (RCE)-6 well in Colombia, earlier than expected.

Plans call for two more wells to be drilled at RCE.

More Info: Newswire

This news is published on the Newswire - a global digital news source for investors and business leaders

Disclaimer/Disclosure: is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: Learn more about publishing your news release and our other news services on the newswire

Global investors must adhere to regulations of each country. Please read privacy policy:

That's all it takes to get an article published on Investor Ideas - Learn More

Get more Oil and Gas - news, articles, and stock directories

Buy a energy guest post on