RE: NewcoSorry Formosa, but I don't see any reason to stuff my head in the sand and join in with these cheerleaders.
I have had money in this since 2004 and I've done my fair share of cheer leading in the past. But some of the stuff that is being said here is idiotic and potentially misleading for investors. I understand that anything read on these boards should be taken with a couple of cups of salt, but there are some readers that don't.
You shouldn't label my comments negative, but neutral. A negative comment would have been something like, "After amalgamation, CGC will trade a .10". That comment I would label as idiotic. I think we will be around .24, and slowly creep up as production/revenue accelerates over the next few years (and higher NG prices!).
With the information that is currently available to investors, there is no way this is going to be valued at .90 when it opens as a new entity of the TSX.
The way I understand the following excerpt from the NR, is that the 3 amigos will cease to exist, and any assets left over after amalgamation will be spun out to newcos:
"The aggregate assets and liabilities of the Partners’, Prophet River, Bougie Trutch and Trutch East assets will become the assets and liabilities of Canada Gas Corp., save and except for Wyn Developments Inc.’s mineral assets together with the accompanying respective liabilities. Wyn Developments will enter into an agreement with an entity created by them (the “Newco”) to transfer the Excluded Assets and Liabilities to their Newco in a manner that results in their respective securityholders becoming securityholders of the Newco immediately prior to the effective date of the Amalgamation. Bighorn Petroleum Ltd. and Flying A Petroleum Ltd. will also follow this methodology upon the successful acquisition of a secondary asset prior to the amalgamation. Currently, neither Bighorn Petroleum Ltd. or Flying A Petroleum Ltd. have secondary assets which would constitute qualifying properties for their respective spinout Newcos to obtain a listing on the TSX Venture Exchange. There can be no assurance that they will obtain such assets and be able to proceed and complete plans of arrangement in time for the Partners to meet their planned time line for completion of the amalgamation. These spin outs are all subject to TSX Venture Exchange approval."