OTCQX:GTBAF - Post by User
Comment by
Goaweighon Oct 24, 2019 9:40am
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Post# 30263619
RE:What does it mean?
RE:What does it mean?Think of it a pre arranged dividend scheme whereby every shareholder gets shares in a new Co. and that New Co., let's call it ( Great Bear Junior ) will receive a cash payment of 2 % net profit from the mine once it's built.
So in future if a buyer comes along and wants to take over the whole Co. they have to first buy Great Bear Sr. which will give them all of the assets but not all of the profit. If they want all of the profit then they have to make another seperate offer for Great Bear Jr. too.
It's a method of trying to get the best possible deal for shareholders if a takeover offer comes in at some point in the future.
captainpooby1 wrote: SpinCo? What the hey? What is a net smelter royalty?