Okay, I guess you actually answered my question. The problem I see is there will still be 1.x billion shares outstanding after the transaction right? And after the transaction, the share price will still be too low so Iâm very concerned about another RS, the kind you DO have to worry about. oz
It wouldnât make sense for the company to perform 2 reverse splits. That would be like going to the bank to withdraw $100 and rather than doing that all in one transaction in the morning, you withdraw $50 in the morning and go back to the bank in the afternoon and withdraw another $50. That would be wasteful and doesnât make any sense. I am confident that the companyâs share structure will be properly adjusted a single time upon completing this transaction.
I donât know where you are coming up with 1.x billion shares outstanding. CDCH has 7 billion shares outstanding. That number was raised in order to perform the transaction in the simplest possible way so that all parties retain the correct pro-rata ownership. CDCH is not going to continue to trade with 7 billion OS. They will bring the share count down (reverse split) to a manageable level that shareholders are unaware of at this point. They could bring it down to 100 million if they want and cancel 6.5 billion shares so that they have 100 million OS and 500 AS. Not sure what figure they have in mind. Whatever the case may be, they will/should leave the share structure enough wiggle room (AS) so that they wonât hit the AS and be forced to either RS or raise the AS again.
The only scenario I see them doing a second reverse split is if further down the road they have an opportunity they didnât anticipate to list on a higher exchange where they have a minimum share price requirement in order to list (e.g. NASDAQ requires a $1.00 share price). But that is further down the road and doesnât really warrant contemplation (or fear) IMO.
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Very good Sir. I feel better already. Didnât realize the share structure was in the making. Not sure where I read the 1.6x from but the 7 Billion is even worse! But if you say they will make it reasonable I believe you. Hope all goes well and thanks.
oz
Absolutely correct, 7B was not an arbitrary number. For simplicityâs sake, the 5% ownership of CDCH was used as the basis in the derivation of the proper number of shares to authorize . The 5% Cerro ownership of AURYN is the existing 350 M shares of CDCH (7B shares x .05 = 350M). Allocation of remaining 6.65 B shares between AURYN and MDMN is simply reduced to a percentage. Whatever the final reduction by a RS will be pro-rata, based on the percentage of ownership of all parties. It is only the percentage ownership that becomes important. To use HRâs example, a 1 for 14 split would result in a 500 million AS count where 100M could be allocated to the OS. This is only an example, it is up to management to determine the appropriate split.
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Appreciate that Easy. Certainly changes how I was thinking it was going to end up. Thanks.
oz
I thought this might be insightful to see what it takes and how things can be financed to start a mining operation:
Monday January 08, 2018 08:36
The board of directors of Equinox Gold Corp. (TSXV: EQX, OTC: LWLCF) has approved full-scale construction of the Aurizona Gold Mine in Brazil, with the cost estimated at $146 million, the company says. Early-works construction began in the third quarter, and the companyâs timetable calls for a gold pour by late 2018. âThis will be a milestone year for Equinox Gold as we advance Aurizona and transition the company from a developer to a meaningful producer, with more than 135,000 ounces of annual gold production expected from Aurizona,â says Christian Milau, chief executive officer. David Laing, chief operating officer, says the tailings dam raise is nearly complete, the mills are ordered and significant earthworks completed in preparation for installation of the mills and other new plant infrastructure. Approximately $25 million of the budget was spent in 2017 during early-works activities. Officials say Aurizona construction will be fully funded with Equinox Goldâs existing treasury and an $85 million secured project credit facility, from which the company has drawn $15 million to date.
Would the seller just dump all his shares and be done already so we can move forward!
Off TopicâŚI think another thread for just discussing any stocks in general would be great. For instance, I am looking at buying some Under Armor (UA) and would love to hear what other people on our board have to sayâŚ
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Maybe we should suggest they name the new company with Crypto in the name. Kodak got in the game and their stock price doubled today! Donât you think the Crypto Mining Play has a nice ring to it 
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New topic created
I haved moved previous posts to that topic.
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Hi everyone. Sorry havenât been around much. Lots of business travel. On the road for 3-4 of the first 6 weeks of 2018 including a few days of pleasure travel.
Just wanted to give a shout out to the mods for doing a great job with this forum and a thanks to those who occasionally click on relevant ads. It keeps the server costs covered.
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Please stay in touch and thanks for all you do/did, past and present.
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What are the chances we go into another Chilean winter with No News as to whatâs happening on the mountain? Sorry, but this has become a joke! A year has gone by since we last heard we were going into production and silence since then.
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Just a guess they would wait until the consolidation is complete before reporting mining results?
Mike then why put it out in the 1st place or just come out and say that?? Why the silence? Itâs been over a year now since we saw the truck with ore head over to Enami
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Auryn now is under CDCH a public company and itâs there duty to report to the shareholders whatâs going on the mountain. No more private
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While I would like an update as much as any other shareholder, technically CDCHâs current reporting tier on the OTC only requires companies to provide updates in the quarterly and annual filings.
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If people are not patient it probably is not in there wheelhouse to invest in stocks.
We live in a society today of instant everything. Stocks are not going to be like fly fishing where there is always activity. Sometimes sitting on the edge of a lake and bait fishing is more the stock market model. Impatience causes the fish to be scarred away. You have the right attitude Rick.