Sure that's how it probably works - new IPO with free shares to existing LTR holders in the new stock. The challenge I see is to put a value on say the Moora project and BD, which then probably should be deducted from the then current LTR SP, especially seeing that nothing or very little value has been allocated to these two projects so far. I haven't see any valuation by broker reports allocated to these two projects either.
A new IPO could be set at 20c/share as is quite normal, but that still leaves the question how many free shares would a current holder receive based on the value of Moora and BD? So would we need expert valuations before deciding. If however a value is put on to Moora and BD, then how much is LTR worth without the two plus what ever else my be thrown in like QLD. Most agree that LTR is under valued as it is, now we may need to deduct value for other projects in the stable. The next question is, would there be a consolidation of the number of LTR shares at the same time, like a 1 for 4 consolidation which could reduce the number of shares to say 450 million and theoretically set the new SP at $1.80. Naturally the employment conditions of the new CEO would reflect the change to $2 and up for those options. This is futile ground for lots of discussion and speculation, but at this stage nothing more than that and some advisors would make their money helping out to get this sorted. In short IMCO there are too many options and therefore its to early to be specific.
... and the lion goes ...
LTR Price at posting:
44.5¢ Sentiment: Buy Disclosure: Held
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