RE:RE:Is it a good buy here based on given NewCo arrangment? "As outlined in the agreement, each Newmarket shareholder will receive one NewCo common share for each Newmarket common share and each Crocodile Gold shareholder will have the option to receive consideration per Crocodile Gold common share of 1.228 NewCo shares or $0.37 in cash or a combination of the two
subject to a maximum aggregate cash consideration of $20.0 million."
With the assumption of full proration, shareholders of Crocodile Gold will receive 1.088 NewCo shares and $0.042 in cash for each Crocodile Gold share held. All NewCo shares issued in the transaction will be at a notional 1 for 5 consolidated basis.
So only up to 20 mill. I do not know what happens if more than that want cash. Is that where proration comes in--something which I still do not understand (ie. proration).