Why would they spin off the most exciting aspect of the biz and what part is being left behind, the least exciting ? I don't really get it. Every business has a driver, a segment that is dominant so why not leave the business intact, grow the additives as fast as possible and then sell off or spin off the non performing, or lets call them the non core assets.
Seems far too early for this, how do you fund each part, how do you split the assets and liabilities, how do you split the management group, what happens to the weaker of the two entities ?
This would have to be spun out to shareholders in the form of a dividend and a seperate Pub Co. created but what a monumental undertaking for a Co. that should be focussing on growing the business ASAP instead of screwing around with this time consuming and money consuming, well nonsense , for lack of a better term.
The stock might do better if they dump the spin off idea and just stick to their knitting. I suspect someone came up with the idea but now they don't really know how to dump it but they probably will.
The TSE won't allow a Co. with negative working capital to borrow money to buy back stock so I don't think that's going to happen either.
Other than that I think the Co. is a gem !