RE:RE:I spoke to IVN Investor Relations today for 20 Minutes5asdncu,
CITIC paid CAD $3.68 share, not $2.80. You're doing some kind of weird redistribution based on post dilution. This doesn't make sense, since no matter how you slice it, they are still paying $3.68 for each and every share. In cash. If anything this demonstrates CITIC believes IVN is worth at least $3.68 share post dilution, since they are well aware an extra 196 million shares will be created to accommodate their transaction.
Dilution is not necessarily good or bad. It depends on what the Company receives in exchange. There is no doubt to me this was an excellent move by the Company. CITIC was prepared to pay a fair price. We were not hamstrung by the short sellers market. Had IVN announced a public placement, it may not have filled, with shorts relentlessly hammering down price on a daily basis. They would have announced a placement, and the price would sink like a rock, just like it does after every news release. Furthermore, these shares will never be sold into the market. They are off the table, probably forever.These are not short term retail investors.The TSX can go all to hell, and the Company has enough funds available to keep up the current accelerated pace for another three years. The partners may also secure debt financing for future mine construction.