Crux Investor Video with GLP, page-79

Hi Kaitor,

I separated a "merger" and a "spin-off" as there is a difference IMHO.

I also would not rule out a takeover either, so I will give you my take on this as well.

1. A classic takeover, is where the buyer buys the entire target company and all of the company's assets. Under such a scenario, the shareholders of the target company simply sell their shares to the buyer (for cash or shares in the buyer's company).

2. However, there are takeovers or acquistions, where the buyer may just take over or acquire the target company's assets, or part thereof.

3. In a spinoff (which is a type of divestiture) it is agreed that the assets of the target company, or target companies, are all put into an newly formed and entirely independent company (perhaps with an IPO).

4. In a spinoff where there is a very large company involved who will be the major shareholder, this very large company may simply create its own subsidiary for the purpose of putting all of the assets of the target company, or target companies into this entirely new entity (perhaps also with an IPO)

5. A merger is a form of an acquisition that is structured by combining the target company, or target companies, with the acquirer (or the acquisition`s subsidiary as outilned above) into one legal entity.


To be honest, I could live with all 5 of the above options (there may be a couple more) i.e. I am not too worried about which form this spin-off or merger takes. The main thing for me is that a major like IGO (or FMG?) is financing and running the entire MTJV/Mt. Thirsty/Norseman show.

BTW, in CNJ's case, I am thinking more that the East Greenland tenemements/prospects will be spun-off into an entirely new Northern European listed entity.

Best regards