If the vanadium resource is not reflected in the share price and if we assume the new company is worth 30 million (Peter is looking for $30-50 million (4:30)). then:
with 75% interest, it means theoretically the value of AEE should increase by $22.5 million. So, theoretically, the share price should be 4.2 cents after the spin off. This excludes any share price increases in relation to the uranium bull market.
Is the new company potentially worth $30 million? AVL and KRC are worth around $70 million each (taking into account the recent pull backs). So, I think $30 million is achievable.
I don't know if this is called an arbitrage opportunity but it definitely is an opportunity!
Vanadis IPO, page-4
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Last
10.5¢ |
Change
-0.010(8.70%) |
Mkt cap ! $86.77M | |||
| Open | High | Low | Value | Volume |
| 11.0¢ | 11.0¢ | 10.5¢ | $93.22K | 849.2K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 22 | 542913 | 10.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 11.0¢ | 19668 | 3 |
View Market Depth
| Last trade - 14.13pm 09/09/2024 (20 minute delay) ? |
| AEE (ASX) Chart |