OTCPK:KRCLF - Post by User
Post by
MaterialsManon Mar 08, 2024 6:22pm
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Post# 35923809
There is more to this
There is more to thisI don't think everyone is reading between the lines..
Assuming there is a deal, and it's all stock, for whatever amount, it has no bearing on what the transaction will be worth until the closing.
It's just a number, and the number will change over the coming months. It will be totally dependent on what the price of RMS stock does over the time period between when the parties agree until trading stops just prior to the closing. In all likelyhood, that will take a significant amount of time.
If I or you hold on to the KRR shares, the value of those shares will vary in direct proportion to the value of the RMS shares.
If RMS goes up threefold, KRR goes up threefold. If RMS shares go south so do the KRR shares.
I had this experience last year with the Newcrest/ Newmont scheme of arrangement.
Unfortunately, my Newcrest shares lost value because the Newmont shares lost value. The deal was said to be worth 21 billion when it was formally announced. No one, including the press seemed to realize what would happen if the Newmont shares lost value. They did, and surprise, surprise, the value of the deal at closing was 17 million. End of story.