RE:FCU assets do not affect market price...?
The $14 million is only paid if FCU decides to pull out of the deal or if another suitor decides to bid and if that happens, the suitor would pay the fee.
DML has some U assets (PEA to come) and the interest in the McLean Lake mill that will generate revenue.
Bottom line, PLS is the prize, so vote based on that.
Art5989
It is hard to get an answer on this bullboard because every question is met with slander and bulls.., At the risk of incurring wrath, I'll try once more. I read in detail both DNN and FCU websites and the information circulars. From what I can derive, the perceived increase in value of FCU due to the PEA has no affect on the merger at this time. Once the ratios for stock exchange were set back in July, FCU was essentially decoupled from it assets and from that point on was coupled with the market value of DNN. So if DNN were to go up or down, FCU would follow at an approximate premium of 1.26 times DNN, probably adjusted by perceived risk factors and time, much like options.
So my question is what happens to my FCU stock value if the merger is approved or disapproved? Well to start, the newly documented $1+ Billion assets in the ground at PLC will either enure to the merged company (DNU) or will stay with an independant FCU, and gradually the market price of either will adjust to the underlying values. Other than the in-ground assets, the only other major asset (as of June 2015) of FCU is approx. $24 Million cash.
If the merger goes through, then all of the current assets and liabilities of FCU will be found in the shares of DNU, as will all of the assets and liabilities of the current DNN. So the $1+ billion in-ground minerals will be eventually factored into the market price of DNU, and DNU will be listed on the NYSE and most likely followed and promoted in that marketplace.
If the merger doesn't go through, in other words if the NO votes prevail, then the FCU shares will eventually adjust to reflect the newly found assets. HOWEVER, the $24 Million cash assets will be depleted by the $14M termination fees plus the $1.2M reimbursed expenses due DNN - in other words cash remaining will likely be less than $10M and everything else is in-ground, and FCU will still be on the pink sheets in the US market. Maybe. How long will FCU remain viable as a stand-alone company?
What is the advantage of a NO vote at this time? I'm still undecided, but leaning toward a view that says my post arrangement value will be greater as DNU than as FCU. Comments?
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