This is how I see it:
If existing shareholders are allocated shares of the new company, they can sell the shares and depress the market value of the new company. AEE will not get any money in this case to produce uranium.
The Spinoff: AEE will allocate around 25 per cent of its interest in the vanadium resource but it will not receive any cash. The new company will use it to develop the vanadium resource. If AEE decides to sell the other 75 per cent, it will receive money. However, AEE will only sell the remaining 75 percent if the market value of the new company is high enough.
After selling the 75%, AEE can distribute the proceeds as dividends but I think this is not likely. It is likely to be used to produce uranium.
This is how I see it: If existing shareholders are allocated...
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