The in specie distribution of CSD shares by SPM is, IMO, to the shareholders of SPM. That is, to its major shareholder (SPI) and all other shareholders. SPM will therefore hold NIL shares in CSD after the in specie distribution.
However SPM will not include, in the in specie distribution, the 9.8% of SPM held by CSD. So CSD will continue with the so-called "free carry".
SPI will end up with 55% of CSD made up of the 220 miilion (its share of the in specie distribution from SPM), 30 million shares issued to SPI by CSD re the $3m advance payment, 36.4 million shares current owned by SPI in CSD (currently 16% by the "cornerstone investor") and the conversion of 27.3 million options at 7 cents per share.
Having read everything today and doing a little bit of research, IMHO, CSD has a great future and will be a great stock. You can thank one person only for all this, IMHO, the great man himself - Ralph De Lacey. Thanks Ralph - you have done an absolutely marvellous job and deserve immense credit (including your great team at the office, special mention Caroline O'Brien).
CSD Price at posting:
8.0¢ Sentiment: LT Buy Disclosure: Held
