Great Bear Resources Ltd. GTBAF

There may be a buying opportunity as a result of the NSR

[Goaweigh]

Let's presume that Chris announces in mid January the establishment of a seperate NSR holding Co. the shares of which will be spun out to shareholders of record on February 1 st. with those shares to be deposited by March 1 st. ( just an example)
So the first reaction might be a pop in the price of GBR because people want to increase their positions to be on recond on Feb 1 st to get those extra shares of the NSR Co.
But what happens on February 2 nd ?
Some may be over extended and only bought those extra GBR shares to get those NSR shares while others may figure that they've made enough money on the GBR shares and will sell those and enjoy the future upside on the NSR Co. shares risk free.
Either way the stock could come under pressure once those NSR shares are locked in.
For me, I'm not going to do anything but collect my NSR shares based on what I own already but I might take advantage of a sell off which could happen after those shares are locked in.
Of course GBR could be at $ 15 by then and only pull back to $ 14 so this scenario/opportunity may be for naught but it is one of those things that could happen so I thought I'd raise it, just for fun !

[GMAN100]

Agree. This is kind of what I am pondering and want to prepare for. Wouldn’t want to miss an opportunity, especially since we are all so close to this we really should be the ones who’ve thought it through and are prepared. 

[captainpooby]

The market will bake it in. It always does. Buying pressure will raise the price before the lock in date and selling afterwards will lower it. If there is some perceived extra value, that will be reflected in the new price. When the spinco shares are created, they will have to have an initial price assigned, like an IPO. Who assigns that price? Chris Taylor, or GBR, I assume, under advisement

[Goaweigh]

I'm pretty certain they won't value the spinco shares any higher than 1 penny. Can you imagine the shite show if GBR spun out those shares and declared them to have a value of $ 8.00 so that at tax time next year we all had a massive tax liability on a stock that we couldn't sell because it wasn't public yet. I suspect they will assign a value of 1 penny when they actually spin out

[GMAN100]

All good points. Good discussions as it hilites the info we will want to see and understand come the NR in January. Thanks. 

[GMAN100]

I was assuming they would be tradeable. After all they remove value from the GBR share, and holders need to have the ability to liquidate as they need or see fit. A short hold period I would understand.  All should come out with the NR in January.