Niocorp Developments Ltd (NB)

[douginil]

Hmmm Numerous posters have wondered why the GX people voted for the merger and then 95% redeemed their positions.

Maybe they liked the project but thought:

> If I vote to approve the merger I have a bunch of warrants that are free and will not be expensive to convert to NB shares in the future.

> I redeem my GX shares and get my full money back and still have the warrants.

> The recent history of SPACs is that the share price of the surviving entity goes down. Therefore I can buy on the open market the same number of shares that I would have gotten if I stayed in by using a percentage of the funds I got back when I redeemed my funds in GX

Result (numbers are example only):

Say I had put in, and got back, $1,00,000
> I now have warrants
> I purchase NB shares on the open market for (say) $800,000 and now have the same number of shares I would have if I had not redeemed.
>I have $200,000 in my checkbook.

Pretty good financial engineering.