RE:RE:RE:RE:RE:RE:Very quiet now, we are resigned to the buyout then?Below I believe are the pertinent phrases from the two news releases. They are virtually the same in their reference to a $31M value in Hecla shares equalling a value of 14 cents for ATAC shares. The difference being that in the second news release they have entered a "Definitive" Agreement as opposed to a "non-binding LOI" and, the "Consideration", as you pointed out, actually defines the number of Hecla shares as being 0.0166 of a Hecla share based on a 5 day trading range ending April 3, 2023, whereas the LOI made no reference to a number of a share based on current cost or if the number of shares would float with the share price. What if the price had dropped? Right now HL is $5.28/share US ($7.02 Cdn).
The Hecla VWAP price per share on April 3rd was $6.38 US or about $8.48 Cdn. times 0.0166 = 14 cents.
The Hecla VWAP price per share on Feb. 21 was $5.07 US or about $6.74 Cdn. times 0.02077 = 14 cents.
A difference of 0.00417 of a share?
So if you have 100,000 shares of ATC you will receive 1660 shares of HC instead of 2077 shares?
Are my numbers correct? Just rambling a bit to see where you are coming from.
From the Feb 21, 2023 news release:
".....a proposed transaction pursuant to which Hecla will acquire all of the issued and outstanding shares of ATAC for C$0.14 per ATAC share, payable in shares of Hecla common stock (the "Proposed Transaction").
The Proposed Transaction represents consideration to ATAC shareholders of C$31 million in Hecla shares and a value of approximately C$8 million in Spinco shares based on Hecla'sC$2 million placement1. ATAC's Board and Management are of the opinion that the Proposed Transaction is in ATAC's best interests. The Hecla shares contemplated to be received provide ATAC shareholders with a premium of 66% based on ATAC's 20-day volume-weighted average price of C$0.0845 as of February 17, 2023, or a 109% premium when including the value of Spinco.
From the April 6, 2023 news release
"whereby Hecla will acquire all of the issued and outstanding shares of ATAC for consideration payable in shares of Hecla....
The Transaction Consideration represents value to ATAC shareholders of C$31 million in Hecla shares and a value of approximately C$8 million in Cascadia shares based on Hecla'sC$2 million placement1. The Hecla shares provide ATAC shareholders with a premium of 66% based on ATAC's 20-day volume-weighted average price of C$0.0845 as of February 17, 2023,
The consideration will consist of 0.0166 common shares in the capital of Hecla and 0.1 common shares in the capital of Cascadia for each one ATAC common share held (the "Transaction Consideration"). The Hecla shares to be received by ATAC shareholders represent a value of C$0.14 per ATAC share held based on Hecla's 5-day volume-weighted average trading price ending April 3, 2023.