RE:RE:MMY to Acquire Australian Tuckanarra Gold ProjectWow. dillution and hefty premiums:
Tuckannarra cost of ~$4m (purchase price $2M + 10M shares at $.20) for an ASX company with a market cap of ~$1.6M (before the deal trading shares were trading @ ~1 cent). This is about a 150% premium.
For 50% of Gascoyne Resources cost is ~$20M (issuing 100M shares @ .20 currently) then completing a private placement for another 100M shares to raise $25M to participate in private placements for Gascoyne shares (for $5m @ $.25/share and $2.5m @ .29/share)...so really the cost is higher. Gascoyne was trading between $0.11 and $0.15 before the deal, so a market cap of $17.4M to $28.5M (premium of 40% up to 130% based on 50% ownership). Private placements are at premiums ranging from 60% up to 163% higher than when the deal was announced.
Gascoyne info + chart:
https://www.asx.com.au/asx/research/companyInfo.do?by=asxCode&asxCode=GCY#price
MMY Shares outstanding will go from ~300M to ~520M or +73%
Welcome to shadyville.