RE:HWO: don't think ppl understand the situation, have a read Here's my back of envelope math here:
- Assume exercise price for PNG private co is $1/share.
- Assume $0.75/share in RoC
- Assume value of remaining Canadian listed HWO (excluding cash proceeds from sale of PNG) as about $20million, or about $0.40/share.
If the shareholder wishes to remain with the same share count in PNG private co, they will use the RoC, plus a contribution of an additional $0.25/share.
Assuming all rights to PNG are exercised, the existing HWO receives the cash proceeds, so the investor's shares in HWO are now valued at $1.40/share.
If the investor sells their shares in HWO at $1.40/share, they have received net $1.15/share in cash, and maintains their shares in PNG private co, but has no exposure to the Canadian operations.
If the investor does not sell their shares in HWO, they have HWO shares at $1.40/share, PNG private co shares, and have incurred cash costs of $0.25/share.
If the investor does not partake in PNG private co., and sells HWO for cash, they receive net $2.15/share.
I suspect there are many better ways to surface shareholder value if this was actually the main goal.