HPQ Silicon Inc V.HPQ

RE:RE:RE:tricky contracts between hpq and pyr .

[Moneycat]

Does PYR get the right to convert to 50% of all of HPQ ( the whole parent company) or only to 50% of certain individual divisions ??

CancerSlayer wrote:

 

Snowdogy wrote: I would say that no additional shares of V.HPQ have to be issued to effect PYR's option to be a 50% owner of HPQ Nano or HPQ Polvere because if they exercize their option they do not buy half of V.HPQ which trades on the TSX. They buy half of the two divisions of V.HPQ (HPQ Nano and HPQ Polvere) which are separate, legal, corporate entities owned by V.HPQ. and which do not trade on the TSX. They are privately-held by us as shareholders of V.HPQ. Besides, the two deals are between V.PYR and each of HPQ Nano and HPQ Polvere and not between V. PYR and V.HPQ so there should be no impact upon the V.HPQ share structure as it is not part of the deal. Considering that the two divisions do not trade publicly its really just a snap of the fingers to make it happen as far as I can see.

Of course, in future if PYR holds 50% of either or both of HPQ Nano and HPQ Polvere then upon a sale of either or both, V.HPQ shareholders get only 50% of the sale value distributed to them with the other half going to shareholders of PYR.

Basically, the deals allow PYR to get a fraction of the return on any sales due to production from both divisions until that magic day when the big fish swoop in and gobble up either or both divisions and the technology held by either or both divisions for themselves. Just before that happens PYR wants to stop being a royalty-receiver and start being a 50% owner of either or both divisions and so they will exercize that option to cash in on what will hopefully be a sale price of billions of dollars for each division. The announcement of PYR exercizing its 50% option in either division should send the V.HPQ share price to the moon because that would be the sign that a division is to be sold and the billions from the sale would be distributed to shareholders.

All of the above is just my opinion.

I wrote a piece not long ago where I speculated as to how this might play out.

GLTA.

 

 

Nice piece...V.HPQ share price would certainly skyrocket in the event of an announcement of a 50% ownership exercise.  But imo, such an announcement would signal a buyout of the entire company/V.HPQ, not a single division or subsidiary.  The sale proceeds coming from the purchase of a single division/subsidiary become part of the listed company's (V.HPQ) assets, which shareholders aren't directly entitled to...unless the BoD feels a shareholder distribution is warranted, or there's a preexisting condition in place whereby shareholders must approve of such a sale that would require a distribution in some form...do not know if that's the case.

But it's nice to know V.HPQ has potentially 3 highly profitable revenue streams in 4N+ Si, fumed Silica & Nano Si...& any one of these could trigger interest in a "whole" company buyout.  Better yet, it's nice to know that the company has more than one silver bullet (or gold ; ), any of which can result in a handsome payday for shareholders...but I'd prefer the company wait til its chamber is fully loaded.  JMHO & GLTA.