Can't understand the negativity around this de-merger of nickel...

Can't understand the negativity around this de-merger of nickel assets.

The nickel assets had little to no reflection in RXL valuation, so the company decided to go the sale or de-merger route. The demerger option was voted as the best outcome for shareholders by management.
Without complicating too much, I think the 1 :4.3 in specie distribution means the Nickel assets are valued roughly RXL Market cap/4.3 which is $22 million approx. ( Forgive me if I have worked that wrong). So the new IPO shares in CANON could be floated around 25-30 cents. RXL and RXL shareholders will keep roughly (11.5 + 48.5)= 60 % ownership and the rest of the(27% prioritised for Existing RXL shareholders + 13% New investors in CANON)= 40% will comprise the new money pumped to form the new company. Since management & shareholders belief that the market was not giving any value while in RXL portfolio, the real value could be higher. Overall if not much positive, I can't see any negative out of this as long it is executed.

The share consolidation always brings short term cap and a downward pressure on the share price. As a lot of pip traders( and there are many in penny stocks such as RXL) exit as it no longer suits their strategy. Making money from pip trading becomes harder. For long term investors it is a very good thing as long as the company performs well. Less shares on hand means less resistance on the upside, likewise again has a lot more room to fall if things go bad.

Hawkes Point investment has put a floor on the share price at .035. I think it is a Hawkes Point Put. Normally it should not fall below that point. They will be an aggresive buyer below that level.

No comments on Alex Passmore's salary, he might be overpaid, but his interest do aligns with us. He and the management will only make big money when the share price rises. They have enough skin in the game.
Alex, Brett, Stephen & Ian(moved on) have put their own cold hard cash in the business albeit at a lower level.
I am happy with my position. Yes it is not as good as ROX at 9cents, I only wish if all my producers have produced the same return as ROX in the last two years.

Please correct my math above for the in specie distribution and the valuation of the new vehicle.