Post by
chizzles on Jul 08, 2015 3:38pm
Unexperienced with mergers...
I am not a fan of this proposal. As I have said in the past, I am a big fan of Almonty and would love to merge with them, I just don't like the terms and I have no idea how we are getting less than the January proposal after we were told that we could get better. How can Mr. Black be the CEO of both companies and determine what Woulfe shareholders get in the merger? Shouldn't this have happened before Mr. Black became CEO of Woulfe? Something isn't right here. The only explanation that I have (with getting less than we did in January) is that the price of tungsten has dropped a lot since then, so they were able to use that to their advantage. I have never gone through a merger so I have a few questions. 1) Are the 18% of shares owned by Almonty allowed to vote? If so, I guess that they only need an additional 48% of 82% of remaining shares to vote yes (Since they need 66% of all shares to vote yes for the merger to go through). 2) Wouldn't we kind of get more than 0.07 per share Woulfe share, since we also gain all of Almonty's properties? That has quite a value on them, and as explained in the NR, they are also now adding the Valtreixal tin/tungsten mine in northwestern Spain with anticipated production in 2017. The one this that bugs me a bit about Almonty is that even though we would be back on the TSX exchange, Almonty doesn't trade at all! It seems like nobody knows about them, even with all of their current properties. I think Woulfe trades more, and they are on the CSE. I am not sure what will drive up the Almonty stock if nobody knows about it. Finally, I feel like we have no choice but to vote yes. IF we vote no, and Almonty walks, wouldn't we be in a worse position? I would hope that Almonty would come back with a better offer, but if they didn't, I have a bad feeling about what would happen after. Any thoughts?
Comment by
chizzles on Jul 08, 2015 5:23pm
Sorry, typo. Inexperienced with mergers...