Question?Reviewing the official statement for the deal, it said:
Also in connection with the Offering, Gold Wheaton has agreed to settle in part the US$42 million completion penalty due pursuant to its gold stream transaction for 14 million Common Shares and a commitment to complete construction of the third gold plant module and satisfaction of the technical completion tests prior to September 1, 2011 (the "Penalty Payment")
Does it mean that Gold Wheaton assume that 14M shares has a face value of 42$M? This represents 3$ per share? So far we don't know what will be the price for the new emission but if it is 3$ less usual discount 7-8% for underwriter. This could explain why everybody is jumpingon a 1,65$ level? Anybody views is more than welcome because I am lost trying to figure it out...
the more you go in details the more confusing it becomes...One thing is sure more than 40 M shares changed hand in two days!!!