TXN 0.00% 58.0¢ texon petroleum ltd

RichE: Generally, that's the way I read the clauses in the...

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    RichE: Generally, that's the way I read the clauses in the extraordinary meeting. I viewed the meeting documents as a sign the Eagle Ford land won't be sold for awhile. I hope I'm wrong, though. However, a couple of clarifications on the meeting document:

    1. There are (I recall) new clauses here on Wandoo's options for providing exploration data on new territory (indicated in the map).

    2. The "sell more than 50% of its assets before X date" clauses are being changed from before 1st Sept to before 1st Jan 2013. Note that these clauses also require the share price to be 50% above the transaction exercise price (not $1.05, which applies to sales after 1st Jan). So, for example, Foss can buy 6M shares at the post-sale volume weighted price (compared to 70 cents if sale is after 1st Jan), but only if the share price then rises another 50%. Personally, I don't understand why they have this clause rather than the 70 cent/$1.05 clause at any time. I've explained earlier the challenges with this clause.

    3. Foss and others can buy shares at 70 cents and exercise them without any price target "if there is a change in control of the company". This is the worrisome clause because there is less of an executive challenge for share appreciation. However, Foss and others would profit only to the degree the shares appreciate above 70 cents, so not too bad for shareholders.
 
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