RE:RE:WM stuffshneps wrote: Fishcarrier - As noted below the Letter of Intent has already been signed on February 14th. At this time the merger price was established over a 20 day trading period as being 0.62c. Even though the market crashed, just over a week later, this is the set transaction price. Any variations in share price (Wallbridge or Balmoral) after after Feb 14th are irrelevant.
The exchange ratio implies consideration of C$0.62 per Balmoral common share based on the volume weighted average price of Wallbridge common shares on the Toronto Stock Exchange (“TSX”) for the 20 trading days ending February 28, 2020, representing a 46% premium to the volume weighted average price of Balmoral common shares on the TSX over that period and implying an equity value of the Transaction equal to C$110 million.
Removal of the overburden is not a deal in this scenario. One aspect is the fact that most of this area is boreal swamp and dewatering of the project will be an ongoing cost and environmental consideration. Keep in mind the positioning of the original Fenlon mine is because it sits on higher ground. This is why WM has been able to drill while BAR had to wait for the ground to freeze.
Cheers
Might I jump I here. Shneps your understanding of the amount to be received by Balmoral shareholders appears to be faulty.
The deal clearly states that the amount is an applied value of .62c not a set value. The actual value received will not necessarily be .62c or $110 milllion but will be .71 shares of Wallbridge at whatever price WM is trading at at the date of the deal closing.
An example of an all share deal is the recent KL/Detour deal the wording is almost the same.
The exchange ratio implies consideration of C$27.50 per Detour Gold common share based on the closing price of the Kirkland Lake Gold common shares on the Toronto Stock Exchange (“TSX”) on November 22, 2019, representing a 24% premium to the closing price of the Detour Gold shares on the TSX on November 22, 2019. Based on the 20-day volume weighted average price of the Kirkland Lake Gold shares and the Detour Gold shares on the TSX for the period ending November 22, 2019, the exchange ratio implies a premium of 29% to Detour Gold shareholders. The implied equity value of the Transaction is equal to approximately C$4.9 billion.
I had shares in both at time of closing Jan. 31 2020. I received .4343 shares for each Detour share I owned plus a small sum for a partial share. At close Jan. 31 2020 KL was at $54.27 .
If I had received the implied value at the time the deal was announced of $27.50 I would have received 27.50 /54.27 = .5067 Kl shares for each Detour share but I did not.
I received .4343 shares of KL for each Detour share.
So the value of my Detour shares at the closing date turned out to be .4343 of a KL share which was $54.27 times .4343 or $23.57 not $27.50. In the same fashion BAR shareholders are not guaranteed at .62c but at .71 WM shares.
Sorry to disappoint you but you could also look on the bright side because there is nothing saying that Wallbridge share price has to remain at these levels. Its quite possible that by the May closing some good news releases might drive up the WM price and thus your .71 shares may end up being worth more than .62c by closing of the deal.