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Exeter Resource Corporation T.XRC

"Exeter Resource Corporation was incorporated on February 10, 1984. It is an exploration and development company. It is engaged in gold deposits in the Maricunga district in Chile, Caspiche project."


TSX:XRC - Post by User

Bullboard Posts
Comment by crowcreekkateon Mar 18, 2010 11:17am
586 Views
Post# 16898036

RE: ACB

RE: ACBOk this is what happens (I think)...
The original XRC ACB is allocated between the two shares based on share values on the date of the split
So, if your original ACB of XRC was say, $7
if for instance on the day of the split XRC closes at 5 and XG closes at 1.5 the total value after spin off is 6.5
ACB is allocated like this: 
ACB XRC is: (5/6.5)*7    = 5.38
ACB XG is:     (1.5/6.5)*7 = 1.61
Total ACB after split doesn't change: 5.38+1.61 = 6.99 (small rounding error)
That's my interpretation.
Cheers...
CCK
Bullboard Posts