RE:RE:RE:RE:RE:RE:Not exactly price dilution? Agreed that Record Date holders are Participating Shareholders and will therefore get new shares.....and PP buyers (or any buyers Wedenday on) wont.
still a shltshow though. TUD used to do PPs to fund drilling and do it with a show of strength......usually at a solid premium to market in the 15% to 20% range and with NO warrant!!!!!!!!!!!!! the past few financings since last fall have all been done CLOSE TO MARKET! and then shares continue to tank cuz hodlers sell so they can buy deal!!!!!
Not sure what koolaid that Bernne at TUD is drinkin, but the banksters at Research Cr@pital are gettin away with murder imho.....
Would also guess that new shares will be worth 40 to 50 cents (so 10 t0 12.5 cents per tud share).....at least until the selling starts. Woulda been nice if they did the Spinout Co fiancing first......that will really give us a good idea.
Even worse, this spinout nonsence is around a year old!!!! shoulda be a 90 day process at most.
Weekend at Bernines on meth!!!!!!!!!!!!!!!!
stockzorg wrote: Only TUD shareholders as of the Record Date will get Goldstorm Metals shares. If PP participants were to get them as well, the terms of the spinout would have to change. Either TUD holders would no longer get .251 shares of Goldstorm Metals, or the number of shares of Goldstorm Metals would have to be increased. This would cause a rewrite of the spinout arrangement.
As a result, the price of the PP had to be reduced from the stock price of Tudor to reflect the fact that Tudor might not be worth the same price without the Goldstorm Metals properties after the spinout. The PP includes warrants - probably to minimize the reduction in PP pricing which gives TUD more money to drill with during Phase II. Make sense? I'm open to discussion.
Interesting that this might give us some clues as to the anticipated value of Goldstorm Metals shares after the spinout. The change in price of TUD since the Record Date is composed of three variables:
1 - The reduction in price due to the spinout of the Goldstorm Metals properties (the value of Goldstorm Metals).
2 - The dilution from the PP.
3 - Other market forces like the price of gold, changes in sentiment and a gazillion other factors that contribute to market price.
In order to guesstimate the change in market price, we can look at TUO vs. TUD since the Record Date. TUD is down about 16%, TUO is down about 10%.
Of the remaining 6% the maximum dilution from the PP is about 3.7% of TUD outstanding shares (assumes all PP shares are sold at $1.44 and all warrants are exercised).
The last 2.3% of the price change might be a SWAG estimate (strictly ballpark, spitball estimate) of Goldstorm Metals expected price after the spinout. That would be about $.15/share minimum. If most of the PP shares are flow-through (higher price), the dilution is smaller and the Goldstorm Metals price is higher. If TUD stock outperforms TUO between now and the spinout date, the expected price of Goldstorm Metals would also increase.
Do your own DD. GLTA. Doug