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MineFinders Corp. Ltd. Ordinary Message Board

  • evansken99 evansken99 Jan 24, 2012 12:50 PM Flag

    Does PAAS have the $.

    I'm starting to wonder if paas has the 1.5B to buy out all the mfn shareholders. If the have to issue more stock, I hope the insiders control enough stock to approve this acquisition. There's no good reason for the "regular shareholders" to dilute their stock. I don't think I've ever seen a company that's being acquired fall this far below (on a % basis) the cash buy out figure two months before the closing. Management is strangely silent -AGAIN.

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    • To rockraider3: Nevermind; I just read your response to brianthego. Now I get it - thanks. I shoul have sold at 14.50; this thing could go back to 10.

      • 1 Reply to evansken99
      • Theoretically, the share price of MFN is now tied to the PAAS stock price. A share of MFN should track to 62.35% of a share of PAAS.

        PAAS is $21.50 x .6235 = $13.41. MFN is about $13.51 right now. So it's pretty close.

        Arbitraguers would be tracking this variance and trading it. Too much work for most investors to skim a dime here or there.

    • To rockraider3: I must be dense. I thought there were 3 separate options for us;1. stock in paas with no cash 2. some stock and a small amount of cash or 3. we could elect to take all cash. If you read the posts, that appears to be what almost everyone is thinking. Most say, "take the cash" not options 1 or 2. What am I missing?

    • There is $175 million in the cash pool (from the MFN balance sheet) and 53 million shares of PAAS in the stock pool. I don't know how many more times I can say this. That is what is being used to distribute to MFN sharholders, if the transaction is to be approved.

      And yes, all PAAS shareholder will be diluted.

      And this really isn't a cash buyout. It's a stock buy-out, with a little cash thrown in, essentially equating to a dividend of the MFN cash to it's shareholders. It's not cash from PAAS.