GXY 0.00% $5.28 galaxy resources limited

Ann: Orocobre and Galaxy Merger - Announcement, page-578

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  1. 14,142 Posts.
    lightbulb Created with Sketch. 8592
    You seem to have seriously misunderstood the merger ratio as per the above posts.

    Your galaxy shares will simply become ORE (MergeCo) shares, at the rate of 569 for every 1000 GXY shares held.

    Forget the $$ price, it is effectively irrelevant.
    The 2 stocks are currently tracking at this ratio (give or take a few cents).
    You don't get $$ upon the merger, you get ORE (MergeCo) shares.
    Your $x,000 worth of GXY shares will simply become $x,000 worth (the SAME) of ORE (MergeCo) shares, as the ratio (0.569) will/should remain in place until the transition, imo.

    The REAL question you should be pondering is this:
    Will MergeCo deliver future returns that align with your risk profile and investment horizon...?
    You will need to compare this to the other companies you mention.

    Good luck.
    Plenty of info here if you look hard and ask good questions.

    Cheers
 
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