RE:RE:RE:New Gold has $2B Market capEven if CRK gets 20% more shares of NGN (as a so called sweetener) at first, and being bought at the so called premium of 37 cents (another so called sweetener in a so called dead gold era), NGN consolidates after that by 1/5th, so that there is at the end 134 million shares in NGN, from originally around 476 million of CRK and 54 million of NGN. Most of the NGN's 134 million shares are CRK shareholders except for NGN's small amount (I think 8 million shares or so) and I guess new management handing themselves millions for their hard work in "merging a winning company already".
ie
"Each Crocodile Gold shareholder will have the option to elect to receive consideration per Crocodile Gold common share ("Crocodile Gold Share") of (i) 1.228 NewCo Shares, (ii) C$0.37 in cash, or (iii) a combination thereof subject to a maximum aggregate cash consideration of C$20 million (the "Crocodile Gold Consideration"). Assuming full proration, shareholders of Crocodile Gold will receive 1.088 NewCo Shares and C$0.042 in cash for each Crocodile Gold Share held. All NewCo Shares will be issued in the Transaction on a notional 1 for 5 consolidated basis. The cash component of the Crocodile Gold Consideration will be funded from the proceeds of the Private Placement (as defined below). Assuming full proration, on completion of the Transaction and Private Placement financing, it is anticipated that NewCo will have approximately 134 million NewCo Shares issued and outstanding and approximately C$40 million in cash on hand."
At first aI thought this had to be a good deal and no hint of consolidation, between two companies with synergy, ie combining strengths, and I don't mean a shell with good management as one of the partner's strength. Since CRK is a producing and profitable gold mine on its own, (and doesn't need NGN or to die in NGN if the gold era is really over. It can die fine by itself if the gold era is over, which it isn't.) But CRK really waiting for the inevitable return of the gold bull market in a world drowning in QE money printing to death.
How wrong I was about the relation with NGN!!!!!!
Luxor shame on you for I guess selling on the cheap, thinking the gold era is over!!!!!!
It's only just beginning again! QE money printing hasn't worked, hasn't stopped and now it can't. The US led west and even the rest of the world are addicted to it. It can't end good without high inflation, gold set lose, and breakdown of the world's money system and world economy with it.
Ie
‘world QE money printing can't end good’
https://www.google.ca/search?client=opera&q=world+QE+money+printing+can't+end+good&sourceid=opera&ie=utf-8&oe=utf-8&channel=suggest&gws_rd=ssl