Friday, June 9, 2017

WesternZagros being acquired for $.28 CAD. Time to sell


WesternZagros Resources Ltd.  announces that it has entered into a definitive agreement (the "Arrangement Agreement") with Crest Energy International LLC ("Crest") and its wholly owned affiliate WZG Acquisition Ltd. ("Crest AcquireCo") to take the Company private. Pursuant to the Arrangement Agreement, Crest AcquireCo will provide the Company with the funds necessary in order for the Corporation to acquire all of the outstanding common shares ("Common Shares") and preferred shares of WesternZagros for CAD$0.28 per share in cash, other than one Common Share held by Crest which will be acquired by Crest AcquireCo for CAD $0.28 and result in Crest AcquireCo owning 100 percent of the Company. The transaction is to be completed by way of a plan of arrangement under the Business Corporations Act (Alberta) (the "Arrangement").

I originally bought WesternZagros because of the potential prolific production they were seeing at their project in Kurdistan. When ISIS was at their peak the stock was way down, also due to lower oil prices, as people thought that the WesternZagros property would be overran by ISIS. That never happened and now the area is in no danger of being interfered with by ISIS.

Unfortunately for us speculators just when things were recovering and looking up a private equity group is coming in and buying WesternZagros at a cheap price. This does happen and there is not much we can do about it. We will take a slight loss on our original purchase price. I recommend selling at the market price if you are a holder.

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