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Gear Energy Ltd T.GXE

Alternate Symbol(s):  GENGF

Gear Energy Ltd. is an oil-focused exploration and production company. The Company carries on the business of acquiring, developing and holding interests in petroleum and natural gas properties and assets. Its operations are located in three core areas: Lloydminster Heavy Oil, Central Alberta Light/Medium Oil and Southeast Saskatchewan. The Company is also engaged in focused on improving oil recoveries through the application of water flood technology. The key properties in the Central Alberta Light asset include Wilson Creek, Ferrier, Killam, Drayton Valley, and Chigwell.


TSX:GXE - Post by User

Comment by houbahopon Dec 17, 2024 2:46pm
56 Views
Post# 36366747

RE:RE:Newco assets fall to the lowest since announcement

RE:RE:Newco assets fall to the lowest since announcementFrom my understanding, if half of the $0.607 is paid in cash and the other half in NewCo shares,
GXE needs to trade at $0.31 to value NewCo at 0.

If NewCo has 20m less 7m in transaction fees, it is left with $13m.

For 40m shares, the cash component is 13m / 40m = $0.325 / Newco or $0.11 / GXE share.

At $0.46 / GXE (where it trades today), NewCo assets less cash is valued at:

$0.46 - $0.3035 (cash) - $0.11 = $0.0465 / GXE share or $0.153 / NewCo share.

Looks like I see what you see. Isn't it a steal at this price or just the complete lack of credibility of the Board of Directors?
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