CVY 0.00% 11.0¢ coventry resources limited

found this re royalty., page-11

  1. 3,072 Posts.
    Marxist

    Here's what we know:

    1. an 'arms length' party has purchased the SMR from Nuinsco for $5.1 million.

    2. But CVY have a buy-back option over 66% of that for $2 million? there has been no ann that CVY have waived this right, so we have to assume CVY can still exercise it.

    3. 66% of $5.1 million is about $3.4 million.

    4. which raises this curly question - why would this buyer pay $3.4 million for something that is subject to a call option for $2 million? Ie, an instant $1.4 million loss to the mystery buyer could be triggered by CVY next week?

    your post offers no explanation at all for this apparent commercial madness.

    if you have a more credible explanation than a t/o explanation lets hear it.
 
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