RE:Should Teuton buy out AMK?rockport1 wrote: So there has been some forum talk about Tudor buying out AMK. What about Teuton buying out AMK?
Since Teuton has a significant premium to AMK now, it becomes a question of whether AMK would agree to a price somewhere in between the valuations so that Teuton could make a profit when Treaty Creek is sold. AMK's 480 million shares at $.18 are worth $86.4 million. Teuton's 60 million shares at $2.34 are worth $140.4 million, a 62.5% premium.Tudor's 200 million shares at $2.25 are worth $450 million, only a 7% premium to Teuton right now, but perhaps the premium reflects the fact that Tudor is the majority owner of T/C.
Does the fact that Teuton's interest is carried make a difference? Probably not since none of the current owners will be around when a production decision is made.
Is the NSR a factor? Sure, but Teuton already has the only NSR on Area 1 (Goldstorm vicinity).
Is 40% worth more of a premium than 20%. It's still not a majority, so maybe not really.
What would the offer be? $.36 for AMK? Would they sell for that? I wouldn't. I think AMK gets as much as $.50/share for its 20% of T/C. Plus there are risks involved in any transaction.
I actually like the way things are. With only 60 million shares fully diluted the potential leverage to the stock price of some other discovery event in Teuton's portfolio remains very high. If they were to double the share count, a new discovery just doesn't pack the same punch.