RE:RE:RE:Life..Argonaut just wrote.
Thanks, CrazyTimes. I assume it works like this: 20,165,000 (New shares) = 1,090,000,000 (Argonaut Gold shares outstanding) * 0.0185 (exchange ratio). Meaning that if AGI hits CA$30, it would be equivalent to AR trading at CA$0.55.
Here is the total value on March 26:
CA$372,044,250 = 20,165,000 (New shares) × CA$18.45 (AGI MAR26 CLOSE PRICE)
CA$0.341325 = CA$372,044,250 ÷ 1,090,000,000
For Argonaut Gold investors to achieve the estimated US$325 million value, AGI would need to reach around CA$22 per share. Perhaps this explains why AGI’s share price is currently bullish during the acquisition.
Regardless, I’m no longer interested in pursuing this further. The SpinCo shares will be worthless after the 10:1 share consolidation. If I were to invest in AGI, I’d prefer to trade AGI on my margin
But much more security in keeping your shares, as you profit form Alamos uptrend and you have a chance at a better offer. I do not see the downside.