RE: More shares offeringsNot sure about anyone else but i don't mind having free shares in another company. It would appear based on the proposed valuation shareholders get what was invested on the ontario play. Sounds good to me as there is no carrying value in moo in terms of shareholder value.
I would agree about dilution if the company does not execute the spin out but I dont think that will be the case.
Can't believe you are trying to bash this transaction. I can't see any downside. NONE. Even if moo keeps the money....you need money to operate.
As for a major taking out moo. If anyone major showed interest/made a bid the stock would take off as shareholders would hold out. At .40 it would cost $40 plus million. You'd be better off taking a 9.9% position in moo and announcing a J.V/farm in with work commitment. The increased share value would partially offset the earn in costs. Would be a far less expensive transaction to gain a substantial interest in the property.
One thing is certain, Moo does not have the capital to develop the play so I expect any earn in/work commitment will need to be 100% funded by the J.V partner. I sure this will be reflected in the percentages.
Cheers