RE:RE:RE:RE:RE:Dennis da Silva - BNN - DON'T BUYPrior to this deal CXB was trading around 1.40, their EPS were calculated based on 460 million shares.
IPrior to this deal CXB was trading around 1.40, their EPS were calculated based on 460 million shares.
If this deal closes they will have to issue around 290 million shares and have around 750 million shares I/O and EPS will be based on the new float.
Valentine will not have a positive effect on EPS until Valentine produces their first profitable quarter, which is a ways down the road.
I think this massive dilution of CXB stock is why the SP is where it is and of course MOZ is trading at .61% of CXB SP.
There was no legitamit reason to do this PP.
I think they stole MOZ and they know it.
Now that a price has been established another offer like .90 cash will fly and CXB will make out like bandits.
Valentine will not have a positive effect on EPS until Valentine produces their first profitable quarter, which is a ways down the road.
I think this massive dilution of CXB stock is why the SP is where it is and of course MOZ is trading at .61% of CXB SP.
If this deal closes there will be anadditional 248.3 million shares of CXB The 66.6 milllion MOZ share that CXB purchased and all additional shares they buy will be converted and cancelled as if they had done a NCIB CXB will end up with about 700 MM shares.
If the deal does not proceed then CXB has their 14% of MOZ and the project is NOW fully funded to completion.