High River Gold Mines Ltd HRIVF

RE: Prognoz

[shortUSA2]

Well, I haven't seen this in print (it probably exists somewhere) but I would assume from HRG's actions that they have a prearranged agreement to purchase the other 50% at a set price, otherwise, as you point out, they'd be better off employing a strategy that  suppresses the value of Prognoz.  They have not been clear about their intentions with Prognoz but I suspect they will simultaneously announce the spinoff and the intent to acquire the remaining stake so that they can raise money under the new company rather than diluting HRG equity.  Hopefully, the spinout will result in HRG shareholders receiving direct shares in Prognoz rather than HRG retaining them as an investment.  Unfortunately, I suspect HRG is looking at the latter option.