Thank you for taking the time to explain this.i own $10k shares...

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Phantom77

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24/07/21

18:42

Post #: 54746474
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Originally posted by GCar: ↑

Hi Phantom,
IF the GXY/ORE ratio is more than 0.569 at the time of conversion, then yes, it may be theoretically beneficial to e.g. sell your GXY shares and buy ORE shares instead. Beware tax implications etc. DYOR. Beware supply/demand constraints potentially spoiling that plan also (i.e. more demand pushing ORE higher if many people were to do this).
Otherwise, if you own GXY shares, and the merger goes ahead, you will then own 569 ORE (MergeCo) shares for every 1000 GXY shares held.
This is the reason that the GXY and ORE prices have been moving in unison and basically sitting at 0.569 since the announcement. My assumption is that it will be basically exactly 0.569 immediately before the transition.

The ORE sp will technically not change at that transition. There will be almost double the number of ORE (MergeCo) shares on issue, and this will reflect the higher overall value (market cap) of the new entity.
If you own say $10k worth of GXY shares just prior to the transition, then you will own essentially $10k of ORE (MergeCo) shares upon transition.

Hope that helps.

Not advice
DYOR

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Thank you for taking the time to explain this.

i own $10k shares in GXY - therefore in theory - I am not be financially better /worst off after the merge as I will own $10k ORE shares.

It interesting to know that once the merger is completed - the new MergeCo will have the sp of ORE but higher overall market cap due to more shares.

Some on here think the sp may go down.

I would have though if the merger is successful - with economies of scale and improved efficiency and lower operating costs - sp would appreciate to reflect these new benefits. What are your thoughts?

GXY Price at posting: $4.38 Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

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