RE:RE:RE:Gold spincowilwal wrote: A spinco does not actually add value to shareholders. If Winston is worth, say $ 2million, then that $2 million is included in FAT's valuation. So technically, FAT will decline $2 million market cap the same day that the spinco starts trading at $2 million market cap and shareholders are the same over all.
That said, a spinco does have positive sentiment around it, so investors are usually marginally better off after the spinco starts trading. Similarly with a stock dividend. It adds no value to shareholders but the market usually adds value for them because a stock dividend is seen as a mark of success.
It won't matter what ratio the spinco shares go out at. The market will assign a market cap value for the spinco, and the share price will be valued accordingly.
Nothing is free. The good thing about the spinco transaction is that capital raised for it won't dilute the lithium asset.
Of far more interest to FAT shareholders is what Drs. Linnen and Martin, and others, are going to present on Thursday. Also far more important are the results of the exploration efforts to date. Those are the things that will make or break a lot of money for FAT shareholders. If Snow Lake turns out to be a world class lithium resource, it will make the spinco look like peanuts.