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by Will Purcell
The diamond and specialty minerals stocks box score for Wednesday was a weak 73-95-142 as the TSX Venture Exchange rose six points to 582. Cory Belyk's Canalaska Uranium Ltd. (CVV) rose 1.5 cents to 40.5 cents on 1.44 million shares. The company is spinning off some non-core nickel properties as a new public company, ironically dubbed Core Nickel Corp. Shareholders of Canalaska will get 0.19987 Core share for each Canalaska share held, according to the approved arrangement.
Why the six-significant-figure decimal you might ask, and it would be a worthy question. The number, says Mr. Belyk, Canalaska's president and chief executive officer, is the result of dividing the desired 25 million Core shares by Canalaska's 125,070,842-share tally. While that is the explanation, remember that no fractional shares will be issued, so your 1,000 shares of Canalaska will become a less-than-ideal 199 shares of Core.
Even for those with a more manly holding -- say 100,000 shares -- the resulting Core holding will be 19,987 shares. No fraction there, but brokers specializing in non-board-lot transactions will still be paying full attention. Worse, since the fractional shares go poof -- there will be slightly fewer than 25 million shares issued in any case. Those inaugural shareholders will own a company with $1-million in cash on hand thanks to a send-off gift from Canalaska, and five properties: Halfway Lake, Resting Lake, Hunter, Odei River and Mel, which span a collective 36,174 hectares in Northern Manitoba.
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