Post by
1dollarinto2 on Feb 01, 2024 10:35am
Voting in Favor Benefits vs. ?
I fully expect the offer from IAG for VSR will be approved next week and that the vote won't even be close. Having read the meeting package, I am a bit confused on why anyone would even consider voting no.
Voting in favor of the transaction provides the option to own IAG shares, potentially benefiting from an increasing gold price, production startup at Cote, future development of the Nelligan, and owning a liquid stock.
Voting in favor of the transaction does not limit VSR's ability to receive another offer on or before February 6th. If a superior offer is received, VSR has the obligation to consider it and share it with shareholders and IMG has the ability to match the offer.
Voting against the transaction does not generate additional offers, does not force IMG to make a superior offer, and although it does leave the 20-25% of the Nelligan project fully in the hands of current VSR shareholders, the shareprice history of VSR provides a pretty clear view of what the current price of VSR shares is without an offer on the table. VSR shares are also not very liquid, limiting shareholders investment options if they are considering moving funds to another project.
Sure, the future value of the Nelligan is higher than what VSR is receiving today, and I would like to get a larger portion of the future value of the Nelligan now, but VSR's future value is worth what someone is willing to pay for it.
I've suggested previously I think there are other companies out there willing to pay more than price per ounce of the current offer once the pressure is on. I'm hopeful other offers are being considered right now, but voting no, or saying you might vote no doesn't help other offers to appear.
Good luck all, we will know in less than a week!