If I read your post correctly I believe you are saying that you think they would have to come up with an assessed value for PTSC shares. Yes, if that assessed value was .50 any purchase of shares by PTSC under that .50 would save money. And yes, issuing new shares makes it even messier. However my point was that in coming up with an assessed value for our shares the share price right now should not be a factor, based on the fact that OTC share prices are able to be manipulated.

The way I see it, you come up with an intrinsic value of PTSC based on our 50% ownership of the MMP, less expenses, taxes, etc. plus any assets, minus any liabilities. Let's say that comes to $500 million.

You then do a valuation of TPL based on assets minus liabilities plus a value based on their current/future operations. Let's say that comes to $500 million.

Based on the above you retire all current outstanding shares of ptsc (assuming ptsc is the survivor, a realistic assumption since you would want to stay a Public entity) and issue new shares in the same amount to the current ptsc shareholder and to the owners of tpl. Let's say you issue 100 million shares, ptsc shareholders getting 50 million and tpl owners getting 50 million. What you've effectively done is accomplished a reverse split, without declaring (and announcing to the world) a reverse split.

The hand-wringers say that they are worried that our intrinsic valuation would be tainted by our current share price, and thusly we would be undervalued. If we are seriously considering a merger with TPL our BOD should insist on an independent valuation of the MMP based on amongst other things past licensing, current license negotiations and future projections, which admittedly can be influenced by TPL. However asking the right questions should be able to minimize that influence. If a merger with TPL should be proposed without this independent valuation this would be a huge red flag to me which I am sure would result in a call to an attorney. In addition, if a TPL merger were proposed without something similar to the above recapitalization that red flag would be waving also. IOW, there is no way you could issue current shares of ptsc and put a "correct" value on them - hwihc is pretty much what you stated to start this conversation.

Contrary to popular opinion I do not think a merger with TPL is in the works. I think the clause regarding TPL was put into RG's incentives because there have been inquiries by a third party in buying a combined PTSC/TPL company in order to obtain the rights to the MMP. I realize I am in the minority in my thinking, and may look like an idiot later, but then it wouldn't be the first time I've looked like an idiot.

Sorry to be so long-winded. Just started typing thoughts and couldn't stop.