HWO: don't think ppl understand the situation, have a read From my post on investor village:
I am not saying it isn't strange but the math is clear: effectively all cash raised for HWO international will go to HWO.TO - which will remain liquid and listed on the TSX.
The cash should be directly translated in share price + whatever HWO.TO is worth; ~ approximately $ 0,50.
Here's from the NR the ways investors can effectuate what they want:
- A shareholder election process whereby shareholders can:
- Do nothing, and receive their return of capital distribution as cash; total value in theory $ 0,75 + $ 1 (assumed PNG-company exercise price) + $ 0,50 (whatever HWO.TO is now worth) = $ 2,25 -> in theory they have created value but this will depend on if this get's reflected in the shareprice
- Elect to exercise their purchase rights (in full or in part); Not sure why ppl wouldn't elect option three but that can be a tax reason
- Elect to use some or all of the funds to be received pursuant to the return of capital, toward the exercise of purchase rights; pay $ 0,25 cents extra to receive shares of HWO international and the now cash loaded HWO.TO worth around $ 1,50 -> if you now sell HWO.TO you will have gotten $ 1,25 back on a share price of $ 1,35 - effectively riding PNG for $ 0,10 cents
Again, I realise this will depend on the shareprice of HWO.TO but this is the theory - and fantastic if it plays out like this.
Also people assume Cyrus is messing us over to get a higher sharecount but the factual indications of that are not really there:
- There are complications of going over 45% or even 50% Cyrus in the past hasn't been willing to go over - this was confirmed several times by the CFO Lance
- Mike the CEO says HWO International (PNG) will be the backstop for buying shares people don't want - not Cyrus (check the telco), though other investors are likely able to buy more if they want (this could include Cyrus)
- If it works out as above, they have created value
- They also have provided a way out for investors that don't want to own a private company
- I am still unclear why it needs to be a private company and this is good to really grill Mike on (I wasn't able to be on the phone call so will try to talk to him him separately)
- This situation will also capitalise the CAD business
- Likely the CAD business would have noted way below $ 0,50 cents book value if left without financing - what would it have been worth $ 0,15 maybe, anyone's guess but that would add up to $ 0,90 cents in total with the capital pay out - the above scenario gives much better value - also to those that want to monetize and not own a private company
- Looks to me like most people don't understand the situation. Let's see what the HWO international exercise price is, but to the doubters: the higher it is the higher the cash balance is in HWO.TO and the higher your likely monetization is when just taking the capital return and sell the cash loaded TSX listed HWO.TO.
R.