Signal Gold Inc T.SGNL

NEXG vs SGNL

[shiftyone]

When you take into account the debt and cash both companies have.

Both properties are being valued at right around or just above $50 million each.

Why are SGNL shareholders getting 29% of the newly merged company, and NEXG shareholders getting 71%?  Almost 2.5 times as much?

When you factor in the 75 million shares SGNL will sell before, or concurrently to the transaction, current shareholders will get less than 29% of the newly merged company.

I can only guess that SGNL was in a much more desperate negotiating position.

I would have thought that SGNL shareholders should have received much closer to 50% of the merged company.  But that is just me.

GLTA

[GrumpyInvestor]

Shifty, you show a poor understanding of the financial concepts you discussed in your earlier post. It might be about right that both companies have projects valued at around 50M$, but one of them has debt while the other does not. If you have a debt free 200 000$ house with no debt and I also have a 200 000$ house with 100 000$ mortgage and we put everything together (houses and debts) in a

[shiftyone]

I was writing my last post while you posted Grumpy.  I can argue either side.  Good luck.