OTCQX:CGTFF - Post by User
Comment by
Fullplateon Nov 09, 2017 10:31am
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Post# 26932581
RE:RE:RE:News - December 11 - The Allegiant Spin-Out Date.
RE:RE:RE:News - December 11 - The Allegiant Spin-Out Date.Good luck with your investment in Allegiant. I first purchased Columbus about 2 months ago in response to the spinout announcement. I am hoping that I will get my Allegiant shares cheaper than the private placement, but I will not get the matching $1 warrants that you will receive. If Allegiant has outstanding drill results and resource increases, the warrants will add more value than I will get from the Columbus stock. Time will tell which strategy is better.
The spinout will will bring more total value to Columbus shareholders. Those who want to own only one of the two assets can sell the other stock after the spinout. Leaving Columbus with only the French Guiana mining property will provide a clean acquisition for Nordgold, which I believe is more likely than Columbus raising money to participate as a junior partner in the mine. If they wanted to do that, they should have sold the Allegiant assets and used the cash to partially fund the FG mine with Nordgold.