Hi there. From what I am reading, Strathcona resources will be utilizing a PIPE takeover to go public. Pipestone Energy shareholders will have a 9% stake in the new firm.
It anticipates the pro-forma market cap to be around $8.6B. So, 9% equity in that would work out to be around $774M. So, it's a bit puzzling as to why the company dipped to a market cap of around $685M on the news, no doubt.
I believe maybe a possible shift in management and the overall takeover that results in virtually no premium in price has resulted in many investors moving on from the company?
I think the share price dropped because the overall opportunity in terms of the takeover situation isn't very opportunistic for PIPE shareholders really.