Orvana Minerals Corp T.ORV

RE:M & A with Americas Silver Corporation

[ganndolph]

Good evening PikangikumKid96,

You were right about the rush to complete a share consolidation.  Looks like the USAPF reverse split will go into effect on December 28th, which means Q4 results will be based on a share float of 40 million shares, and my estimate for Q4 USAPF profit is 5 cents per share.
So USAPF should start trading at $2.35 USD per share.

Management is targeting the end of January to move the listing to the NYSE. The RS was a prerequisite to USAPF being able to do a merger.  I initially thought that my post on the USA board was rank speculation about an acquisition of ORV by USA.  However, the speed at which USA's management is acting on the RS leads me to believe that there is a bigger game in play here. 

 So how do you merge an acquirer with 40 million shares with a company that has 136 million shares.  1/3 of a share of USAPF priced at $2.35 for every share of Orvana would seem about right and  result in a merged entity with about 85 million shares. That would price Orvana at around $2.35/3 or 78 cents USD. Any thoughts on the potential terms or timing are welcome.


Here is part of USAPF's news release:

Completion and timing of a listing on the Exchange remains subject to the Board’s discretion and the requirements of the Exchange but is currently targeted for January 2017. The Company will provide further updates in due course.

Share Consolidation Ratio and Effect on Outstanding Common Shares and Convertible Securities

The Company’s Board has selected a Share Consolidation ratio of one post-consolidation common share for each 12 pre-consolidation common shares resulting in approximately 40,000,000 (39,540,409) postconsolidation common shares outstanding. This ratio was selected to allow for a buffer over the required initial share price for the Exchange in light of recent commodity price volatility. The effective date of the Share Consolidation is December 21, 2016 and post-consolidation common shares are expected to commence trading on the Toronto Stock Exchange (“TSX”) on December 28, 2016.