Moydow Mines fka MOY

[amarksp]

Here's the math:

$20,000,000 NEM consideration
$25.50 share exchange rate
784,314 total NEM shares to MOY
70.00% assumed % distribution to MOY shareholders
549,020 share distribution to MOY shareholders
26,414,014 MOY shares o/s
0.020785164 NEM shares per MOY share
$28.00 NEM share price
$0.58 arbitrage value of MOY share in US$

Per my understanding of the press release, MOY can take its $20M payment from NEM entirely in NEM shares at $25.50 exchange rate. This equates to 784,314 of NEM shares. My assumption/best guess is MOY will distribute about 70% of these NEM shares to its shareholders, thus 549,020 shares will get distributed. Since MOY has 26,414,014 shares outstanding, this equals .0207 NEM shares per 1 MOY share. And since NEM is trading at $28, that makes the arbitrage value of MOY shares US$.58.

Of course the math above assigns $0 value to MOY $800K cash in bank, the NEM NSR royalty, and Botswood/other properties, etc.

MOY share price is now below what my best guess is what the NEM distribution will be... The key variable remains, will MOY make a significant NEM share distribution (i.e. around 70%)? My hunch is they will, and the current share price is some kind of very bad joke... FWIW, I have not been filled on my MOY order today at US$.54 which is over and above the Can$.75 ask quote.