Great Bear Resources Ltd. GTBAF

Great Bear Royalties spin-off of shares May 4 after close

[lumpy13]

What's interesting is that they will be spun-off but not tradeable:

"Great Bear Royalties shares will not be listed on a public stock exchange but will operate as a reporting issuer." 

Can anyone explain the logic of not being tradeable?  

[vestor111]

Easy.  The value is not shown YET.  So why go public too early.   It is a sit and hold.  Why do u want to sell early?   

[lechmeir]

"Can anyone explain the logic of not being tradeable? " Yes.  CT has said that the royalty won't see any cash for quite some time, and the structure they've chosen is considerably less expensive to run on a year over year basis.  I don't know enough to agree or disagree.  I'm simply reporting what he said. I gotta say though, he's done ok by me so

[Ivorygull]

I'd imagine too that if they were tradable now, then CT would have to try and keep all us share holders happy with the Royalty Company like he is doing with GBR, and we'd all be wanting to know what's going to happen next, why hasn't the share price gone up, on and on. He just wouldn't be able to deal with all of that when he is still trying to get us the best deal with GBR

[Schmoby]

Lol, keep us happy? You realize there is very little value in spinco intially right? Basically until GBR defines a resource and someone actually develops it into a mine in what. maybe 5 years, then these shares will really have very little value until then, hardly worth trading and certainly not worth the costly requirements to list and accounting audits etc, until they are worth something, it'

[diabase1]

....and a 2% NSR is not much either!!!

[Ivorygull]

You missed the whole point of what I said. I was giving a reason as to why there was no point in having them traded. It would just be one more thing that he would have to do when he is busy enough trying to get us to a resource. ie having to deal with a spin-co that is tradable whether it traded a lot or not, is just more work trying to keep shareholders happy.

[lumpy13]

Royalty/streaming companies buy royalties years before the mine go into to operation.  Their strategy is to identify a what could be a could property, get in early and then eventually reap the benefits.  As such, as soon as they're tradeable, they'll have value.  People don't seem to realize that.  As GBR progresses the project, the greater their value.