Can someone explain to me what is going on with this.

Who would buy shares at .72 when you can buy them on the market for less.

I think Petro offered to buy at .72 back in Aug, but why would they pay more now?

Falcon issued 28,888,880 shares on December 18 2008 to satisfy the Automatic Exercise of Previously Issued Special Warrants, related to the August 25 2008 Agreement with Patrohunter.

Petrohunter recieved $20 million Special Warrants from Falcon as part of the purchase price for the 50% interest in the Beetaloo Basin acerage.

In that Agreement Petrohunter was offered a price protection.

http://www.sedar.com/GetFile.do?lang...

What does the price protection means? First of all, the closing price of Falcon shares were $0.90 cents on August 22 2008. The closing price of Falcon on December 18 2008 was $0.21 cents, and that is 77% below the price that was on August 22 . My reading on this, that Falcon still ows $13 million dollars out of the $20 million deal to Petrohunter.

Is my interpretation right?