Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Ursa Major Minerals Incorporated T.UMJ



TSX:UMJ - Post by User

Comment by green24on Mar 21, 2012 12:09pm
431 Views
Post# 19700265

RE: UMJ takeover

RE: UMJ takeover

It isn't a 'known take out price of .15'.  The takeover deal is a 25 to 1 conversion on closing in mid June.  If NKL is $5 at that time, the conversion rate would effectively make your UMJ shares worth 20 cents each.  If NKL is still $2..87 at that time, your UMJ shares will only be worth 11.5 cents.  Still a full cent more than the current .105 bid.

So if you think NKL is going to stay at this level for the next 3 months, you have a 9-10% gain on UMJ shares when the deal closes.

If NKL drops over the next few months, you could say you have 9-10% downside protection already baked in to protect your capital.

If you think NKL will be much higher a few months from now,  because of the drilling results and the PEA due any day now, then not only will you gain on the move up in NKL, but you would get the extra pop from the difference in where UMJ should be trading (with a 25:1 conversion) and where it actually is trading today.

<< Previous
Bullboard Posts
Next >>