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Global Railway Industries Ltd T.GBI



TSX:GBI - Post by User

Comment by TheRock07on Jul 16, 2013 7:25am
269 Views
Post# 21609525

RE:4 for 1 Consolidation and Name Change to Chinook Tyee Industry Ltd?...

RE:4 for 1 Consolidation and Name Change to Chinook Tyee Industry Ltd?...This is an unusual ( given the share count ) move but a good one.

Consolidations in which there are hard liquid assets usually result in a share price that will rise above hard value.

Otherwise, with no hard asset underpining, it is bad for shareholders.

Note also that NOR is also undergoing a 1 for 4 as well.

My interpretation is that they are planning a major equity exchange/ raise that requires big bucks.

Big bucks would be required for a major business acquisition and/or RTO.

Lets say it involves a $30 million acquisition.

At, say 27 cents per share, such would require about 105 million share dilution...huge.

But, at $1.10 per share, only 27 m shares need be issued and the s/o would only still be just above 30 million.

Its also clear that there may be an amalgamation of NOR and GBI subsequent to the move.

What will be their new business.


This may be it................Chinook Industry Ltd, a rather substantial private oil services company with attrative fundamentals in a strong niche ( RTO probably ).
https://www.chinook.ca/default.aspx


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