Hi Major,

No in that hypothetical example I meant 28 to 1.

See, if ECU had rallied suddenly to 1.40, Golden Mineral's board would not have accepted any rate less than 28 to 1. In other words, the independent opinions came back that ECU and GM were valued equally (by both firms' advisors), regardless of the potential MSZ results. ( In all fairness, GM could also report some excellent results in Argentina, so that is part of the "consideration.")

So, in order to value the companies essentially equal, the conversion rate has to adjust for any sudden change in price to maintain equilibrium.

Regarding Baba's comments, it isn't stock PRICE that is relevant, but MARKET VALUE (price X # shares).

And, I doubt the price was .78 when it was agreed upon. I suspect that the agreement was reached right before the announcement and as you may recall, the stock traded as high as C$1.09 and then C$1.04 the two days before the announcement. And, that appreciation was probably more attributed to the Van Eck 8+ MM share purchase Friday and the subsequent activity (short covering) the following days. I seriously doubt if there was any leak! Personally, I thought the company was announcing the MSZ results when I saw the stock halted.