High Arctic Overseas Holdings Corp V.HOH

SWAN

[BigWillie]

I guess we can re-define "sleep well at night". I am still sitting on a plile of cash from RoC, waiting for a bad times with sadistic smile. Instead, this little baby stock refuse to go down. Oh, what a bummer, haha.

[Stonksonlyup90]

Stock only trades at 76 cents per $1 of working capital.. wouldn't expect this to drop any lower

[colourama]

People seem to be happy giving their shares away right around the $19-20 million level (Cad). Do they realize that HOH has working capital of $19 million *USD*, not $19 million Cad? I think that investors don't really understand the company, and there is a lack of awareness about it. Am interested to hear what management's vision is in the near term. A question on the CC was about making

[AVALONSHARK]

"With the completion of the reorganization and in accordance with the Arrangement, the Corporation is obliged for Canadian taxation compliance purposes to determine the fair market value of the SpinCo shares" - We should have an update in the next month or so. Barring any other announcement I'm expecting management to lowball on the valuation.

[Stonksonlyup90]

Would be tough to get away with a valuation BELOW Working Capital.. yet that is where we trade. Will be interesting to see how the share price reacts once the valuation is released.. a bunch of investors waiting for validation before adding?

[colourama]

Avalon, suppose for the sake of argument that the fair market value of SpinCo shares was found to be $2. How would that affect shareholders in terms of tax? I'm definitely not versed at all on "fair market value" assessments and what they exactly mean for "taxation compliance".

[AVALONSHARK]

As far as I understand, retail shareholders won't be impacted in any way. I expect another round of asset devaluation given the bleak picture of PNG revenues. While the HWO picture is relatively clear, the HOH future plan and associated valuation of the rigs, cash etc largely depends on whether they make any acquisition or just wait for better times in PNG.  While we can be

[colourama]

Appreciate the comments Avalon. I guess then my question boils down to, why does a fair value assessment need to be performed? Presumably this is something mandatory by tax authorities. But what is its purpose?

[AVALONSHARK]

I'm not sure tbh however did not find reference to this in the information documentation realized prior to the re-org vote. This tells me that it's really non-consequential and more related to high Arctic's tax reporting obligations. We will obviously know more in a month or so.