I am still trying to get to understand the numbers around the numerous funding arrangements for Falcon and my aim is to build a summary of the how the funds was expensed. I am rather dissapointed that no constructive criticism has been provided by fellow members.

As i analyze the funding received, here is one that i am trying to understand from the MD&A :

In April 2008, the Company received $25,000,000 from ExxonMobil as the initial consideration under the PDA. At December 31, 2008, costs associated with the transaction were $3,684,000, resulting in net cash proceeds of $21,316,000.

Exxon gives $ 25million to Falcon for entering into the agreement. This is not private placement and should not bear financing costs. Maybe some legal costs or consultancy costs associated with the PDA. Then what is the $3.6 million costs relating to. This represents 14.7% of the advance received ???

I do not see any explanation why this number is so high. Can anyone provide some light to this ?