RE:RE:RE:RE:RE:RE:Looking good.Hi imho, if you calculate the exchange ratio on the initial February announcement date, it would equate to 48 shares of ATAC per share of Hecla. Let's just round it and call it 0.02 share of Hecla per share of ATAC.
Fast forward to the April announcment and the exchange rate deteriorated from 0.02 to 0.0166. There is no excuse that either party should've been exposed to market risk in the 6 weeks between announcement dates. Have you ever seen any other M&A activity whereby the parties publicly agree to an acquisition at some undisclosed future exchange rate? If you agree in principal to an acquisition AND publicly disclose this, you are effectively telling the market and shareholders what to expect.
Yes, I have expressed my concerns to Graham. I received a very generic answer to the extent that the rates were agreed to by the parties, etc. I have requested that Graham and the BoD express ATAC shareholder concerns to Hecla so that they can correct the exchange rate. I'm not holding my breath that Hecla will step up and do the right thing however.
What baffles me is, it seems very few of us are even keen to the fact that these games were being played. Is that why Hecla thought they could get away with this? I am the lone voice crying out about this?
I know that for those with small investments it might not amount to much, but consider for every 100,000 shares of ATAC you own, you will now be receiving 340 less shares of Hecla, or about $2,300 USD at today's prices. That is not chump change my friend!!
I'm not against the acquisition per se, I want what Hecla originally agreed to though. Don't tell me you will give me X and then tell me I will get some percentage of X instead. That is not being fair or treating us with respect.