While we're waiting for a nr lets have some more fun with numbers.

In a proposed spinoff what will the share ratio be? For easy round numbers let's say there are 80,000,000 kxl shares.Would they distribute shares in the 2 new companies 1 for 1 ,or 1 for 2 kxl, 1 for 3 kxl, 1 for 4 ,1 for 5 , 1 for 10 kxl?

Management will want a reasonable float for trading purposes but 80 million shares of a newly formed company ,I think would be too many.

Also we must bear in mind that the 2 new companies would have no operating capital unless kxl gives them some of theirs ,so they would have to do a share offering to generate some initial capital , which would further dilute the shares.

So,I'm thinking either 1for every 2 kxl shares or 1 for 3 and I'm leaning towards 1 for every 3.This would give an initial float of either 40.000.000 shares or 26,600,000. Either way we all come out winners!

As to what price the shares of the new companies would trade at would be greatly influenced initially by the price of the ipo.

Comments? Rico