Cascadia Minerals Ltd V.CAM

Hecla share price to determine # shares to ATAC shareholder

[silvereagle80]

ATAC and Hecla have extended the Letter of Intent agreement another month. Why? They say to complete their due diligence. To my knowledge ATAC did not have a vote of their shareholders to approve this merger? Now if they say on April 15, 2023 that both companies have completed their due diligence and will complete the deal at the close of market on April 15, 2023.If Hecla stock rises to $6.00 per share, Atac shareholders would receive almost 20% less shares than they would receive based on the price at the time of the letter of Intent or $5.02 per share. ATAC price was set at $.14 CDN and $.10 USD on the date of the letter of intent and can not change with the market. Hecla's price continues to change with the stock market. The only fair way is to use the Hecla market price on the date of the letter of intent or $5.02. If not, let the ATAC shareholders vote on whether they approve this merger and want almost 20% less for their shares than they were offered on date of letter of intent. I bring this up because the members of the board own less than 2% of the stock and we expect them to make a decision in the best interests of the other 98% of the shareholders.

[givemeabreak1]

Silver I do not believe you are correct as the exchange rate is set at the date of the letter of intent so the actual value is accretive to both!  

[givemeabreak1]

My arguement is based on the typical agreement!  So far this is not a binding letter of intent as near as I can see.  When a binding letter of intentent is signed it usually includes a share ratio based on a disclosed closing date.  If that date was included in the original LOI any gain on Hecla would also be a gain for ATAC.  If a share ratio is not disclosed with a date then

[UptickHedge]

A great point! Atac shareholders will get less HL shares as there is no ratio set yet - and as the HL share price continues to appreciate, less upside once the transaction takes place. The news release was needed as VGCX forced its hand. It's surprising VGCX doesn't make another move. 

[Heywood_Silvers]

The exchange rate MUST be based upon the original date of the announcement of the merger.  Anything less would be unfair. 2.21.23 HL closing price of $5.06.  14 cents CAD = 10.5 cents USD.  $5.06 divided by .105 = 48.2 shares of ATC per share of HL. Anything less needs to be rejected.  The offer is already low, so we shouldn't expect to lose out on any market movements in

[givemeabreak1]

Heywood your calculation is questionable.  The 14 cent valuation is based on the exchange ratio the date of the letter of intent.   The exchange ratio remains the same so at a 6 dollar share price that would be divided by 48.2 shares equal .124 US per share rather than .105.    

[Heywood_Silvers]

Based on today's closing price of  HL ($6.18), ATADF should be trading at 12.8 cents instead of the 10 cents it is currently trading at. We all have to watch this closely to ensure that we don't get screwed on any exchange rate into HL shares.

[givemeabreak1]

Silver typical agreements have share exchange ratio's on the date of the original letter of intent so it may be a nice bonus for existing shareholders.  As far as shareholders on this board holding less than 2% I am not so sure about that given I hold about 2% so that means no one else on this boards holds any shares.

[silvereagle80]

givemea   I was referring to the Board of Directors of ATAC not this board.  My info from  Simlly Wall St.   If you own 2%, you own more shares than all of the Atac Board members in tota per Simply Wall Street..  

[UptickHedge]

Another good point. Terrible inside ownership representation.  Any guesses as to would run the spin-off co??   So shareholders cashed out at .14 and management get jobs for another 10 years looking for copper. 

[givemeabreak1]

I probably do! 

[barringtondolby]

So you have a lot a stake, and I believe you seem to be comfortable with the Hecla proposal, is that correct. Appreciate your comments as always.

[givemeabreak1]

Heck I bought alot of shares much cheaper so yep I am very comfortable with the Hecla proposal.  Would I like more well hell yes I am sure everyone would always like more.  That said, a healthy profit is always better than a healthy loss!

[barringtondolby]

I can appreciate you being happy with a sizeable gain if you took advantage of the SP when it was around 6 cents, I also bought around that price, and likely many more of us who have followed Atac over the years.took advantage at that price. But the Hecla deal to me is a big slap in the face to LTHs. Atac has expended well over $100 million since it first started oprations on Rackla in 2006. From

[givemeabreak1]

Maybe me but 100% plus return and whining hardly seem real....  Maybe you own at much higher or just know when to be happy.  Sure would I like more but I am not whining.  Not too often you get a chance at one premium buy out but two to drive the price over 100%.  Definately happier today than I was a month ago.