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Ryan Gold Corp V.RYG



TSXV:RYG - Post by User

Post by stockman6767on Jun 30, 2015 8:16pm
127 Views
Post# 23883176

My rough calculations on the OBAN deal

My rough calculations on the OBAN deal
I have done some very rough calculations based on a few assumptions and from data available on Stockhouse on the cos involved.

I assumed that the market value for the prior 15 days (as they suggest) (prior to June 9) was a reasonable place to start even thogh a better valuation might be based on the gold in the ground and cash in the bank. I began with a comparison of the FOUR cos (EAG, CRG, RYG and TME) leaving the OSISKO contribution for later. Dundee it seems makes no contribution but owns shares in 3 of the 4 cos.

All numbers in the following brackets are respectively for (EAG,CRG,RYG and TME).
So step 1: the number of shares outstanding - (25.3M, 21.1M, 117.1M, and 186.6M).
Step 2: My rough idea of 15 day avg for the shares: ($0.32, 0.34, 0.13 and 0.07).
Step 3: The resulting company market cap ($8.1M, 7.2M, 15.2M, and 13.1M).
Step 4: Total market cap (sum of step 3) of merged 4 cos: $43.9M.
Step 5: Percentage each co of the total merged value (18.45%, 16.40%, 34.62%, and 29.84%).

Now compare to the proposed distribution in the deal for New Oban:
Step 6: The proposed distribution of shares of N. Oban (10 + 5Wts, 7.67, 1.88, and 0.78).
Step 7: # shares of N. Oban recieved per co (253.3M + Wts, 161.8M, 220.1M, and 145.5M).
Step 8: Total N. Oban shares (not incl. Osisko) = 780.7M shares.
Step 9: Percentage each co of N. Oban shares (32.45%, 20.72%, 28.19%, and 18.69%).

Now compare step 5 to step 9.
Step 10: The compaison: (18.45 / 32.45, 16.40 / 20.72, 34.62 / 28.19 and 29,84 / 18.69).

Conclusion: EAG is a big winner and TME the big loser. CRG and RYG smaller diff but not right.

All the above ignores Osisko and its $20M contribution and the warrants given EAG.

All the above IMHO a rough idea of the unfair deal proposed with TME (and RYG) the very big loser.
This assume as they proposed that the 15 day average before the deal is significant.
I think that the deal should be valued by AU in ground and cash in bank.
This would be less susceptible to manipulation and closer to truth and not steal future value from any of the participants by those who knew what to buy in advance.

Vote NO!

Glta
Stockman676
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