Replies to post #219 on Continental Resources Group, Inc.(fka CRGC)

[Steuvin]

gzone,

I think the situation would work this way:

There are currently 95 million shares of CRGC outstanding. Suppose that PGLC has to give CRGC 1.9 million shares of PGLC as a penalty. That would add 2.5% of the current PGLC shares held by CRGC to CRGC's pot.

Since CRGC shareholders will receive 8 shares of PGLC for each share of CRGC, CRGC would have to give each shareholder a CRGC stock dividend of 2% prior to the distribution.

It would be a wash for CRGC shareholders because it would dilute PGLC but inflate CRGC by nearly the same amount. It would be a negative for current PGLC shareholders because their stake would be diluted. However, it would be better, even for current PGLC shareholders, than a cash penalty because the cash is needed for operations.