KAT Exploration Inc (KATX)

[snow]

pro-trader

I think giving shareholders shares in BVIG through a dividend is a very bad idea if the shares are restricted. If the restricted shares had had the same value as free-trading shares the economic effect should have been nil. The shares in KATX could be expected to lose the same amount in value as the value of shares we get in BVIG. But because the shares in BVIG will be restricted they will only have about half the value of the free-trading shares. Therefore at least for one year we will lose by having restricted shares in BVIG instead of KATX retaining those shares. After all all the shares we own i KATX are free-tradning and the value of those shares will include the value of the shares own in BVIG.