Post by
captainpooby1 on Oct 24, 2019 10:31am
Share price
It would, necessarily, devalue the share price of GBR. Any takeover bid would have to take into account the cost of the royalty.
In theory, it should be a wash for shareholders since we would own shares in the royalty company, pro rata. In practice, I think once it’s priced in, be a net gain. I think that explains the drop in price.
Comment by
BILLMINER on Oct 24, 2019 10:47am
For someone that didn’t even know what an nsr was, ye seems to be once again, misinformed. It’s all around positive.
Comment by
Goaweigh on Oct 24, 2019 10:50am
That is a very good point too, but I suspect the theory is that the 2% is easily lost in the confusion/euphoria of a takeover and so splitting it out at least focuses the market a bit more acutely to what's going on. Adds a bit of leverage maybe and certainly doesn't cost us much for the trying !
Comment by
BILLMINER on Oct 24, 2019 10:54am
I feel dumber now after reading these messages. Sp jumped 15% yesterday on this news . The sheep find out a day or so later
Comment by
Chad005 on Oct 24, 2019 10:58am
Maybe people thought that a buyout was happening today and could cash in quick. Personally I’m long and strong so this is great news. The share price movement is all speculation until the royalty is actually in place, this is just an announcement of intent.