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I'm guessing the demerger is a great way to circumvent any claims on profits from the Castillo Government.
I would think the listing has the potential to raise a decent sum on the Canadian stock exchange.
Yes Noggers
Just wonder is it worth keeping these shares till the demerger, does anyone think when the demerger happens will the share price go down to reflect the free shares we are supposed to be getting in the other company.
shareholders "may" get the opportunity to sell their Aclara shares via HOC at the demerger time ...HOC will then sell them in one drop to a Canadian broker ...or even hold them themselves
..I seem to remember VOD shareholders being able to sell their Verizon shares via VOD
Thanks Ed
I no longer trade online as I no longer trade. I am back with paper certificates for many reasons. Selling on FX will not be a problem.
My online broker went into admin a couple of years ago but eventually got my money back. Buying share through a nominee account carries a certain amount of risk and would recommend to any investor to make regular printouts of any transactions.
I see inflation concerns again pushing up the PoG.
My broker says we get shares in Aclara; not a payout as some here are suggesting. As they are TSX listed that is a bit inconvenient for UK holders who at minimum will have to pay fx charges to sell and at worst won't be able to sell at all if you are with a broker that doesn't do TSX trades.
"Assuming such conditions are satisfied, the Demerger will be effected by the Company distributing Aclara Shares representing 80% of the entire issued share capital of Aclara to shareholders of the Company ("Shareholders") by way of a distribution in specie (the "Demerger Dividend")."
The dividend will be in the form of Aclara shares (by the Company distributing Aclara Shares.)....which when listed can be sold on the market if required ...
...how many Aclara shares will be worked out according to your HOC holding I suspect ..at some future point in time
The "booked value" of the 80% will then come off the HOC balance sheet
Prudential have just been doing a similar thing
https://www.prudentialplc.com/en/news-and-insights/all-news/news-releases/2021/13-09-2021
My understanding is we the shareholders get 80%, hoc keep 20% and when the new company is listed new shares offered for fund raising. Seems like plenty of companies doing the same, kod and irr going through similar process.
Kford
My understanding is we only get 20% of the new floated company and that will be reflected in HOC's MC but get the 80% of the value of aclara at the floatation price. If so then the dividend will be subject to CGT. Or is this too simplistic? I guess we will know more later today.
The 'market' seems to like the news and being mindful of any cries of ramping this could be a logical stage in any approach to sell the company. Not that I think that will be the best for investors here as true value lies in the rising price of gold.
Aclara needs a lot of investment,obviously , and will take time before any revenues come from it .....so it might be a better bet anyway..to sit back and wait and invest in Aclara at a later date ..when any dilution has occurred from any IPO
..let others pay for the development...and then get in once the green shoots start to show
Yup - those are the words and all very understandable - it's the numbers that count though, not the words :)
Still, go with the mo - looking good from 130s obviously.
" Access to capital:
the Company has a pipeline of precious metals opportunities with which Aclara currently competes for capital.
At the same time, Aclara has an ambitious growth plan based on the development of several production modules and may eventually invest in building its own separation capabilities.
Given the Company's likely future prioritisation of precious metal projects, a separately-listed Aclara will be in a significantly improved position to raise capital from investors who are keen to support a high-growth rare earth opportunity and may have a different approach than precious metals investors."
All seems to make sense when you read the detail........
"...although the Company has applied its expertise to identifying and developing a rare earth mineral deposit, the Company believes that its strategic focus should remain on precious metals.
In contrast, Aclara has a different strategic approach in order to succeed in the speciality rare earth industry and will be required to develop specific commercial capabilities and consider further integration down the permanent magnet value chain.
Both are areas of expertise that the Company does not currently possess and, even if it were to develop such expertise, this would not necessarily enhance the Company's precious metals business in the future."
I think it is probably the right thing to do...
HOC shareholders can always use their dividend payout to buy shares in Aclara
So costs going to the new shareholders and we retain 20%, presumably cost-free but I've not absorbed this yet.
Obviously the market appears to like the fact we've spun it off but this is HOC so WTF knows.
Silver ramping, not sure I trust it at $24 yet but time will tell.
No my understanding is 80% is sold to new shareholders and we get a pay out. Hoc (thus us) retain the 20% not sold
Am I correct in thinking we get new shares in Aclara as a dividend, thus having not one but two companies to own.