If the 5% interest is reported at a value of $270,960, Why does Auryn wants MDMN to pay 50M for an extra 5% ?
You’re comparing apples to oranges.
The 5% buyback clause was not a valuation measure, nor should it ever be used as one. It was essentially a clawback provision allowing MDMN to recapture some equity in the ADL if it proved out to be gangbusters. At the time the purchase agreement was crafted, neither party knew what value ADL held. MDMN had no way of knowing if it was giving away the mountain. So the parties agreed to a 5% clawback of equity for $50 million. There is no way MDMN would’ve ever been able to afford the $50 million buyback unless ADL was significantly successful and producing. So you can’t use that pie-in-the-sky metric for any kind of comparison.
I wonder if the clawback provision will be transferred to Cerro Dorado.
why not sell MDMN shares now and just buy CDCH?
Because mdmn shares are cheaper (at least today). not getting as much bang for your buck if your in this for the long term.
You’d be buying high and selling low.
Not sure about all the ramifications of selling MDMN and purchasing CDCH. But, if you were going to buy one or the other now. You will be able to freely trade CDCH but at some point the MDMN converted shares will be restricted of a period of time.
Every two shares of MDMN you own right now are worth a little more than one share of CDCH. I don’t think the math works in favor of selling M for C, especially when there is no liquidity in Cerro. I’m content to hold my MDMN to get the Cerro divy and maybe the MDMN shell will someday do something.
Claims transaction filed in an OTC News and Disclosure for CDCH:
first one in 18 mos
Nice to see .035 with 650k traded
TR, what would that do for anyone if all the mdmn shares are exchanged for cdch? Do you mean just something else possibly to invest in? Thanks.
Yeah, just shoot me in the head now and get it over with
Triple digit green as of right now… loving it and the volume it takes to push this baby up that much.
Will cdch going up on such little volume also benefit mdmn shareholders when we convert? If so, would it be better to buy mdmn for now since it is much cheaper. Especially if what TR said is true about two shares of mdmn being worth one cdch. Very confusing…
just happy to see it move!
Once Medinah shares get converted into cdch they will be restricted for 1 year. If you buy Cdch shares those will be free trading. This is a buy and hold stock so if you plan on selling next year buy cdch if you plan on holding buy Medinah much cheaper
What’s one more year considering how long we have already waited. They might be doing us a favor because many would be selling before then. I will be a little worried when the the restriction is taken off. If there are significant gains there will be a mass exodus that will surely hurt the share price at that time. Having said that, presently the ask on cdch is ten times higher than the ask on mdmn. So it would seem mdmn is the better buy. What am I missing?
At this point in time, based upon a post I put up after the news broke out on the MDMN forum which Kevin Tupper responded to, I don’t believe that MDMN shares are going to be EXCHANGED for CDCH. I am under the impression, for now, that MDMN is likely to issue a dividend of CDCH shares at the stated rate of .558 shares of CDCH for every share of MDMN you own. So basically you’ll be getting one share of CDCH for every two shares of MDMN you own. Once that dividend is issued, MDMN will be an empty shell company that will stay in our accounts. There will be nothing to do with the MDMN shares but sell them for whatever cost you can get for them or hold them in anticipation of some future possibility unbeknownst to me, like perhaps another company buys the shell to use to create another public company with. This means that all of the value of your MDMN shares is transferred, if you will, into the CDCH company since that is the entity that management is choosing to move forward with for its business purposes.
The big question is when will the CDCH shares be converted.
and the sell off…
calling day traders to unload typical