Regenx Tech Corp. C.RGX

Only good news?

[GoodHabits]

I'm usually a bit of a bear when I set my own expectations on these things, and I'm definitely no expert, but I'm trying to find where the negatives are with this announcement of the Letter of Intent to sell Cehegin in the way they've announced, and I can't see too many:

- Mineworx is getting $20 million when they were getting nothing before, which, if it materializes in the form of cash, gives Mineworx a great bit of revenue to use finishing up the Davis recycling production facility.
- the mystery buyers of Cehegin must be someone with actual mining interest and with enough of it that they're putting in $20 million-worth of skin in the game.
- the drilling program and Spanish government regulatory approvals for the mining part of the operation must be getting somewhere, or else how would the $20 million AND the "newco" listing be worth the hassle.
- Mineworx shareholders should see an appreciation in MWX share price at least inclusive of the $20 million revenue which is a first for MWX in a long, long time, as well as a continuing piece of the pie for what Cehegin will become, for which I think $20 million is only the tip of the iceberg.

The "negative" bits are:
- missed timeline for the drilling program completion...we're almost double the time further along than originally hoped without an update on the completion and drilling results. HOWEVER, I imagine that in order to built a base-price for "newco" it might be a deliberate strategy to make those kinds of news releases once "newco" is official. I'm not wise enough myself to know whether that's wise, but maybe so.
- related to the missed timeline, a continuing absence of NI 43-101 confirming the mining asset estimations
- while the update that "newco" work is continuing, the revelation also adds further delay, time needed for due diligence to be completed by the new owner and all related regulatory hurdles and listing on stock exchange

I am curious about the muted response on the volume this Tuesday, when US markets re-opened. I'm guessing the uncertainty of the "newco" share structure as well as the new owner (partner?) has something to with it. If the new owner is a big name, this would fly, but not knowing, I imagine the market is just biding its time.

When I first read the news, I thought "What, this whole thing is only worth $20 million"? The more I re-read it and digested, it feels like "Someone's willing to pay $20 million to be first in line and then still giving us a piece of the pie for the privilege".

Hopefully others with more insight can elaborate.

[Therancher]

Good thoughts!!! Immediately upon reading the release ( after being alerted by 15 people it was out) I emailed GP and said he better clarify this potential sale asap as once again things are "as clear as mud!!!  All we ever seen to have here is 5 or 10 of us speculating on what is or could be which continues to be as frustrating as #ELL!!!!! GP did get back with we will be further

[PinkCow]

My take on the press release is that the asset will be transferred to newco at a 'valuation' of $20M, which is likely a notional value being used for tax purposes. No cash will change hands. All of the shares on newco will be distributed to existing MWX shareholders as return of capital which will reduce everyone's ACB on their exisitng MWX shares by a predetermined amount per share (i

[GoodHabits]

This is interesting and makes some sense in the way this idea had been floated before that the Cehegin asset will be spun out into a new Mineworx company. The part that gives me doubt to this simply being an at-arms-length company is that the news release specifically says the asset is being sold and that due dillegence is needed. Why that wording if it's simply being spun out into a new

[PinkCow]

It could be the case that they have found a partner and MWX contributes the asset for X% of newco shares and the partner contrinutes cash or something else and gets the rest of newco. Then MWX jsut distributes the newco shares it received from the 'sale; of the asset into newco. Of course this means that shareholder ownership is diluted from owning 100% of the mining asset to whatever percent

[GoodHabits]

PinkCow, thanks for your elucidating explanations. I think your second hypothesis is definitely the case, that MWX would not be as capable of advancing the project as an experienced partner would be. It would seem that indeed, the shareholder ownership dilution is the price we'll pay for the benefit of the partner moving this forward, so that's a lot of unknown there. You've

[PinkCow]

Look, my hope is that through this transaction they can create some value. Then the ownership dilution is not an issue. In theory, this is the approach they took down in Tennessee by creating a JV and giving Davis 45% ownership. Presumably that is the price of locking in a partner to move things forward on that front (assuming something actually happens). My concern is that they live up to their