Resource Capital Gold Corp GDPEF

RE:RE:RE:RE:RE:RE:hypothetical RCG+ANX merger

[LeftBook]

ANX was trading close to book value on April 17, 2019

Market price 34.5c CAD

ANX Dec 2018 

balance sheet $57.9

liabilities $14.8

shareholder equity $43.1M

book value = 43.1/120M shares = 35.9c/sh

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It would be interesting to see how much of the RCG debt would be converted to shares and at what price if a merger became apparent.

If the debt for share price is higher than the market then some debt holders might elect to purchase their shares in the open market instead. Effectively putting a floor under the existing ANX price.

If the debt for share price is significantly lower than the market then ANX shareholders might question if RCG is acting in good faith.

If RCG shareholders are offered a smaller slice of the pie, say 50M new ANX shares rather than 60M new ANX shares then RCG shareholders might question if ANX is acting in good faith. 

There might be some haggling on those positions. Book value is a near term number. Shares reflect how much of the future earnings one might get.

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It is not clear to me if Gary Lewis wants cash for other ventures or would convert his debt to shares in a merger.

Note:

Numbers are hypothetical
The math might be wrong.

ANX merger is hypothetical.