Post by
cigarbutts on Dec 26, 2018 1:25pm
Continuing the RANT
If the tiny brains managing these two sister companies GZZ/RZZ can NOT agree on the valueof the SIRIOS or other royalties held by GZZ as part of a stock for stock merger, the SIMPLE solution would be to simply spin the royalty company part of GZZ into a seperate public entity, or sell it, as part of a solution to the feeblemindedness.
Since GZZ holds about 50% of RZZ, and is the undervalued part, a FMV of RZZ does NOT have to be concerned with a current valuation of Agnico, Yamana, or any other assets/royalties held by RZZ, as GZZ stockholders would continue to have their 50% ownership position in RZZ assets maintained.
I assume the tax effect of a stock for stock merger of GZZ into RZZ is essentially a big WASH, that there is zero near term tax on this transaction to GZZ stockholders..