Q: I owned shares in Arena Minerals, which was bought out by lithium Americas. What is my cost base for my LAC shares based on a purchase price of .276 per Arena share. How do I determine that? On my new statement showing the LAC shares the cost base shows as zero. I’ve never been involved in a buyout before. Thanks for the help as always.
You can view 3 more answers this month. Sign up for a free trial for unlimited access.
Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: LAC is buying (subject to approval) Arena by offering LAC shares but no cash. I currently hold AN and am wondering what your view of the takeover is; good, bad or indifferent? Does it make more sense to wait and take the LAC shares or sell for cash now. One concern I have is the LAC will be splitting into 2 companies but other than one company holding American properties and the other holding International properties (ie. AN) I can’t find details about the proportions of the new structure. I’m a little concerned about LAC AFTER the new companies are in place. The American focused company has current environmental issues that will presumably continue. I’m not looking for personal advice here just your opinion of a general nature. Deduct as my credits as necessary, I would value your insight as always.
Q: Arena is up quite a bit today. I can’t find any news for the company. Do you know of any?
Q: Since LAC has invested 6 million into Arena (AN). What is your take on this exploration company. I think it must have good prospects as both LAC and Gangfeng Lithium have invested in it. The number of shares has also probably risen. So how much risk is there in buying this company?
Thank you
Steve
Thank you
Steve
Q: Can you comment on Arena. It has been halted but I can’t find details. Care to specualate on why?