GREY:SCPZF - Post by User
Post by
pmac2015on Nov 29, 2016 10:45am
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Post# 25527098
Proposed Merger - Devil is in the Details
Proposed Merger - Devil is in the DetailsOne troubling thing that jumps out is..
"
- Sprott Resource Consulting Limited Partnership will receive 21,750,000 Warrants as a long-term incentive to replace the profit distribution program that is currently in place at Sprott Resource Partnership and which will be terminated upon completion of the Transaction."
In other words Sprott Inc, wants more money to manage these assets. They are currently so far from their hurdle rate of return that they would never have the ability to earn profit incentive compensation. So they are awarding themselves these warrants to replace what is now essentially valueless.
There is a lot more that needs to be examined before it can be determiend whether or not this deal is good for existing Sprott shareholders.