Oh Well
To explain my previous rant, I was speculating that STM would take over TU.
If you search on SEDAR for just "Wolfpack" you'll note that a capital pool company named "Wolfpack Capital Corp" recently filed a prospectus. The company's principal is one Devinder Randhawa, currently CEO of Fission Uranium and former CEO of Strathmore Minerals.
I wondered why a uranium guy like Dev would want to create a capital pool company with a name so suspiciously similar to Wolfpack Gold Corp. In connecting too many dots, I concluded that Dev was doing Bill a favor. Wolfpack Capital Corp would be the vehicle into which Wolfpack Gold could RTO and go public allowing a company like STM to swoop in and take over TU.
STM has over $5mm in cash. What STM mgmt should have done was take over Tigris Uranium before their RTO with Wolfpack Gold.
There are clear synergies between STM and TU properties. Both are(were) uranium-focused exploration companies with properties in NM and WY.
TU is trading at under $3.5mm market cap with cash on hand of over $8mm. STM could have easily offered $5mm cash and $5mm in shs to take out TU. This would represent a premium of over 100% to current market prices though it represents just a tiny premium over cash value. Why would TU take just cash value? TU mgmt already tipped their hand when they valued TU at just $10mm in their proposed RTO with Wolfpack. I am certain that us TU shareholders wouldn't be opposed to a special cash dividend and proforma STM shs... it beats the snot out of whats being proposed now.
For STM, the transaction would be accretive, not dilutive. 25% increase in sharecount but over 50% increase in uranium resource making it one of the largest undeveloped uranium portfolios in America. Cash would also increase from $5mm to over $8mm.
As well, STM would acquire TU's 10%+ ownership of NexGen Energy (NXE) and I am sure STM can find a buyer in Dev's Fission Uranium (FCU). This would have been the favor in return for Dev's creating a capital pool company for Wolfpack Gold Corp (and possibly Strathmore's Copper King Au-Cu property).
Instead of pooling their uranium assets, these mgmt teams go and dilute their focus by picking up gold and copper projects.
Oh Well. So much for good sense.