Penny-Stock Bet on Athabasca Yields 6,500% Gain for Ninepoint
Cenovus Energy has reached an agreement to buy Athabasca Oil in a $5.7 billion deal designed to expand production and bulk up on oil sands. The buyout agreement values Athabasca at 12 Canadian dollars per share. This cash-and-stock or acquisition event follows an earlier period of financial pressure for Athabasca, creating a massive payday for early backers. Notably, the Canadian fund Ninepoint secured a 6,500 percent gain from an initial penny-stock investment made during the depths of pandemic-era market downturns.
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- ✓ Cenovus Energy struck a deal to buy Athabasca Oil for $5.7 billion to expand production.
- ✓ Ninepoint generated a 6,500 percent gain on its early investment in Athabasca Oil.
- ✓ Ninepoint originally purchased a nearly 10 percent stake in Athabasca at 18 Canadian cents per share in early 2021.
- ✓ Cenovus stock fell as the company announced the $5.7 billion Athabasca deal.
What changed
Cenovus Energy agreed to purchase Athabasca Oil for $5.7 billion, generating a 6,500 percent gain for early investor Ninepoint.
Live updates
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Cenovus Acquires Athabasca Oil for $5.7 Billion
Cenovus Energy has reached an agreement to buy Athabasca Oil in a $5.7 billion deal designed to expand production and bulk up on oil sands. The buyout agreement values Athabasca at 12 Canadian dollars per share. This cash-and-stock or acquisition event follows an earlier period of financial pressure for Athabasca, creating a massive payday for early backers. Notably, the Canadian fund Ninepoint secured a 6,500 percent gain from an initial penny-stock investment made during the depths of pandemic-era market downturns.
Why it matters
Ninepoint previously purchased a nearly 10 percent stake in Athabasca in early 2021 at a price of 18 Canadian cents per share when the company faced severe financial stress. The transaction highlights the high rewards sometimes found in distressed energy assets during periods of sector recovery. Cenovus stock fell following the announcement of the acquisition price and terms.
What is confirmed
- Cenovus Energy struck a deal to buy Athabasca Oil for $5.7 billion to expand production.
- Ninepoint generated a 6,500 percent gain on its early investment in Athabasca Oil.
- Ninepoint originally purchased a nearly 10 percent stake in Athabasca at 18 Canadian cents per share in early 2021.
- Cenovus stock fell as the company announced the $5.7 billion Athabasca deal.
Still unconfirmed
- Sinovus Energy will assist in more efficiently developing the company's oil projects amidst rising oil prices driven by geopolitical tensions and government support.
What to watch next
- Regulatory and shareholder approval milestones for the Cenovus and Athabasca transaction.
- Subsequent movements in Cenovus share prices as the market digests the $5.7 billion acquisition cost.
confidence 95%Sources used for this update (10)
- Bloomberg.com — Penny-Stock Bet on Athabasca Yields 6,500% Gain for Ninepoint
- WSJ — Energy & Utilities Roundup: Market Talk
- BNN Bloomberg — Cenovus strikes $5.7B deal to buy Athabasca Oil, expand production
- BOE Report — Athabasca Oil Announces Agreement to be Acquired by Cenovus Energy
- Yahoo Finance — Cenovus stock falls as company announces $5.7B Athabasca deal
- Yahoo! Finance Canada — Stocks in play: Athabasca Oil Corporation
- The Globe and Mail — Cenovus bulks up on oil sands with $5.7-billion Athabasca buy
- www.dobenergy.com — Penny-Stock Bet On Athabasca Yields 6,500% Gain For Ninepoint
- www.livenews.co.kr — Ninepoint’s Athabasca Bet Delivers 6,500% Gain on Cenovus Oil ...
- jarayid.com — 18-cent investment gains 6,500% - jarayid.com
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