RE:Different Reactions
there's so many things wrong with this deal I don't even know where to start. Did anyone even bother looking up the other two companies? Paying two large premiums for two problem riddled companies that were bleeding money all of 2019 and questionable assets? All while STILL trying to spin up CGC? So everyone's good with the subsequent 40% dilution and risk? Soon after the merger how else do you think they'll raise capital to try to progress multiple projects? Yup, financing and further dilution. It's like these guys have the attention span of a goldfish; they just can't stay put long enough to see one thing through. To put it bluntly, GCM shareholders are getting totally effed up the bum with no lube. There's people saying this merger will create a billion dollar mkt cap at the expense of "a little dilution"? The production level at all active sites in oz combined don't nearly justify a billion dollar market cap even with gold strike price at $2000 LOL I'll see you in 7 to 10 years, maybe you'll get close by then. Before this NR GCM fair value was about 550M market cap; if they continued to focus on developing current mines going by the trend, they would likely reach that and provide good shareholder value in the next 6 months with the current economical climate, which really is pretty difficult to predict beyond the near term. Instead, now every GCM shareholder is being put at great risk with this merger and acquisition to wait out a long term pan out, banking on these "so called" synergies to work. Another poster said "remember gold prices will really excel in 2021" LOL even more laughable. So we're supposed to "remember" something that's happening in a year? Quit reading reports by analysts who are selling you a $3000 spot gold price while they're busy cashing out buddy. If there's retail shareholders here with larger positions I'd urge you to exercise your right and vote this down. There's just so many intermediate or senior miners out there that can currently provide much better returns at much lower risks to make this company an attractive buy out of this merger for investors. They blew the chance to ride this recession wave nicely.