공고 • Feb 24
Zeg Oil and Gas Ltd completed the acquisition of remaining 17.5% stake in Forza Petroleum Limited (TSX:FORZ). Zeg Oil and Gas Ltd entered into an arrangement agreement to acquire remaining 17.5% stake in Forza Petroleum Limited (TSX:FORZ) for CAD 18.4 million on December 10, 2023. Zeg Oil and Gas will acquire remaining stake at a purchase price of CAD 0.15 per Common Share in cash. Zeg Oil and their affiliates, together with joint actors, control, directly or indirectly, 500,431,626 Common Shares, representing approximately 82.5% of the issued and outstanding Common Shares.
Closing of the arrangement is subject to customary conditions, including, among others, receipt of court approvals; the approval of the Arrangement by a “majority of the minority” vote; exercised Dissent Rights. A special committee of independent directors was established by the Board of Directors of Forza. The Special Committee unanimously determined and recommended that the Arrangement is fair to the Minority Shareholders and is in the best interests of the Corporation and that the Arrangement Agreement be approved by the Board. A special meeting of securityholders of Forza Petroleum will be held on February 12, 2024 at 4:00 p.m. (Central European Time). The transaction is expected to close during the first quarter of 2024. Cormark Securities Inc. acted as fairness opinion provider to Special Committee of Forza and will be paid a fee of CAD 0.401475 million. Cormark Securities has engaged Stikeman Elliott LLP as legal counsel to support their mandate. Taisha Lewis and Krisztian Toth of Fasken Martineau DuMoulin LLP acted as legal advisors to Forza and the special committee has engaged Stewart McKelvey as legal counsel. Markus Viirland and Richard Turner of Blake, Cassels & Graydon LLP is legal counsels to Zeg Oil. Computershare Trust Company of Canada acted as transfer agent to Forza.
Zeg Oil and Gas Ltd completed the acquisition of remaining 17.5% stake in Forza Petroleum Limited (TSX:FORZ) on February 22, 2024. Zeg Oil acquired remaining 17.5% stake in Forza Petroleum for a total consideration of CAD 15.92 million. Forza Petroleum has applied to have the Common Shares delisted from the Toronto Stock Exchange and to cease to be a reporting issuer under Canadian securities laws. 공고 • Dec 12
Zeg Oil and Gas Ltd entered into an arrangement agreement to acquire remaining 17.5% stake in Forza Petroleum Limited (TSX:FORZ) for CAD 18.4 million. Zeg Oil and Gas Ltd entered into an arrangement agreement to acquire remaining 17.5% stake in Forza Petroleum Limited (TSX:FORZ) for CAD 18.4 million on December 10, 2023. Zeg Oil and Gas will acquire remaining stake at a purchase price of CAD 0.15 per Common Share in cash. Zeg Oil and their affiliates, together with joint actors, control, directly or indirectly, 500,431,626 Common Shares, representing approximately 82.5% of the issued and outstanding Common Shares.
Closing of the arrangement is subject to customary conditions, including, among others, receipt of court approvals; the approval of the Arrangement by a “majority of the minority” vote; exercised Dissent Rights. A special committee of independent directors was established by the Board of Directors of Forza. The Special Committee unanimously determined and recommended that the Arrangement is fair to the Minority Shareholders and is in the best interests of the Corporation and that the Arrangement Agreement be approved by the Board. The transaction is expected to close during the first quarter of 2024. Cormark Securities Inc. acted as fairness opinion provider to Special Committee of Forza. Cormark Securities has engaged Stikeman Elliott LLP as legal counsel to support their mandate. Taisha Lewis and Krisztian Toth of Fasken Martineau DuMoulin LLP acted as legal advisors to Forza and the special committee has engaged Stewart McKelvey as legal counsel. Markus Viirland and Richard Turner of Blake, Cassels & Graydon LLP is legal counsels to Zeg Oil. Computershare Trust Company of Canada acted as transfer agent to Forza. Buying Opportunity • Dec 06
Now 33% undervalued after recent price drop Over the last 90 days, the stock is down 29%. The fair value is estimated to be €0.079, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 29% over the last 3 years. Meanwhile, the company became loss making. Reported Earnings • Nov 09
Third quarter 2023 earnings released: US$0.002 loss per share (vs US$0.04 profit in 3Q 2022) Third quarter 2023 results: US$0.002 loss per share (down from US$0.04 profit in 3Q 2022). Revenue: US$8.51m (down 83% from 3Q 2022). Net loss: US$1.56m (down 107% from profit in 3Q 2022). Over the last 3 years on average, earnings per share has fallen by 51% per year but the company’s share price has increased by 32% per year, which means it is well ahead of earnings. New Risk • Jul 28
New major risk - Revenue and earnings growth Earnings have declined by 11% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (10% average weekly change). Earnings have declined by 11% per year over the past 5 years. Minor Risks Shareholders have been diluted in the past year (2.6% increase in shares outstanding). Market cap is less than US$100m (€53.5m market cap, or US$59.0m). Reported Earnings • Jul 28
Second quarter 2023 earnings released: US$0.22 loss per share (vs US$0.054 profit in 2Q 2022) Second quarter 2023 results: US$0.22 loss per share (down from US$0.054 profit in 2Q 2022). Revenue: US$784.0k (down 99% from 2Q 2022). Net loss: US$131.3m (down US$162.8m from profit in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 36% per year, which means it is tracking significantly ahead of earnings growth. 
