Of course Kirkland Lake (KL)is looking to buy De Grey. Probably just waiting for the sh!t to hit the fan around June when De Grey hasn't come up with the funds to payoff Indee. Were at 423 million shares now. Kirkland Lake owns 33.33 million or 7.8% In June, if things don't go well. KL could make a number of offers.
) Payoff Indee with cash for the right to convert repayment for shares at a certain price at a later date.
) Provide De Grey with cash for shares plus options. My guess is 150 million shares at 12 cents with 150 million options at 18 cents expiring in 2022 KL would then own 32% of the company. De Grey could also renegotiate KL's existing 33.3 million options to 15 cents in lieu of the granting more options.
) Most likely is a buyout for KL shares at 15 to 18 cents per share. Would cost KL about $80 million in stock and payoff management to ok the deal. Management would recommend it stating it beats massive dilution necessary to payoff Indee and gain funds to operate for another year.
DEG Price at posting:
11.0¢ Sentiment: Hold Disclosure: Held
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