SweetPea/PHUN’s decision to sell had nothing to do with cutting their loses. From FO point of view, they consolidated for negotiation reason as Newtofo laid out. Why would PHUN do this? Simple, by owning shares in Falcon Australia they only were exposed to Australian assets. If Marc is in control of PHUN, swapping shares from Falcon Australia to parent company Falcon is a no brainer for risk reduction. Now PHUN has exposure to three assets instead of one. Plus, PHUN now has tradable shares, which was not the case with the shares of Falcon Australia. PHUN also needed cash badly, which gives them more breathing room.

When you "own" supposed land for oil and exploration, you have investing requirements or the rug is pulled from under you. If PHUN does not raise more cash, this is a real possibility for them since they would fall short of their cap ex requirements for "owning" the land. If you do not pay, you do not play, it is that simple. PHUN needed the cash more than a majority interest in a subsidiary.