Gear Energy Ltd T.GXE

My understanding without the prospectus

[scienceguy36]

My understanding with limited info at this stage is "Newco" is a company being newly formed.
$80,000,000 cash to sharholders for all their shares - ($80,000,000 divided by 262 million shares is
.30 per share plus .30 worth of shares in the new company. December is the last dividend. Basically, Newco witll be the old Gear starting over at .30 cents per share with no dividend.
After 4 years being invested in Gear i am selling my 242,000 shares and shopping for another Dividend stock. GLTA

[Webinator]

This press release seems a bit confusing. One thing I can't determine is if the agreement equates to 0.607 per share "and" .3035 of the newco or, 0.607 or .3035 of the new co.   if it is the latter "or" situation, who gets to determine the combination of cash and shares?   If a shareholder receives both under the "and" scenario, there is value in

[houbahop]

Ask lebel to explain where he sees value...

[constructionsite]

The press release is pretty clear.  It is OR.  It is at Shareholder's discretion. The Company is being sold - valued at $0.607 per share.  You can take it in cash or shares of the new co. or a mix of both. 

[rustyblades]

".......Basically, Newco witll be the old Gear starting over at .30 cents per share with no dividend......" And with all of the adminstrative costs carried by a smaller entity and revenue base.