Tuscany International Drilling Inc T.TID

..is TID canceling the 109 million shares from M&P?

[dominik123]

Anyone know what TID is doing with those shares? And if they are cancelling them, how does it effect the Share Price or the Market Cap valuation?  Normally reducing the number of shares - increases the SP price does it not?  Can anyone add some insight?

[veronikagermany]

According to TID, the shares will be cancelled. In my post below, I analyzed why the insiders own now 21% of  TID !  Actually, they own  56  million shares  out  of  266  million  shares  currently. They owned 15% before the Maurel deal (375 x  15% = 56 million  shares). So now their interests  are even more aligned with

[hegemonicoblivion]

hmm... dont quite agree with that, but I assume you are awake,  just that I cant see your logic. anyways.. it was a good day... profits all round, except for one... soon to be out of the portfolio.

[Popps]

..........anyone with the last name "oblivion" should be jumping all over this big dip. Glad to see you have done well today.  Goodbye, and don't let the door............... 

[dominik123]

Come on people. What I mean by this post is, if TID is cancelling 109 million shares, that is the same as buying back shares.? The opposite of dilution. It would mean the value of the shares would go up -  on the day of cancellation - wouldn't it.. based on the Market cap vs shares?   Anyhow if someone can help shed insight on this.

[hegemonicoblivion]

It would appear big shareholder is in essence paying for part of deal with shares, and the optics of cancelling shares is good as well. Now there may have been other options, but thats not what transpired, now back to my evening.  Cant help you out veronika, but thats what makes a market, I guess.

[BigA!]

Dominik,  You are thinking correct but your math may be a little flawed. If Tuscany had net assets of 300 million and 300 million shares outstanding, the company would be worth about $1.00. If they cancel 100 million shares the company is now worth $1.50. This would be 300/300, and then 300/200. But the company downsized. They no longer have the same amount of assets. So now assume after the

[veronikagermany]

Good explanation BigA. According to the CFO, TID will CANCEL these shares. There is no question about this.

[doggonemad]

This is from the MD&A boys and girls.  Shares will be cancelled. On November 13, 2013, the Company entered into several agreements whereby the Company  effectively will sell all of the assets and liabilities comprising the Company’s African segment, as well as  two rigs currently located in Colombia, to Établissements Maurel et Prom SA (M&P). Total consideration&