Expert: Steven Taylor - 7/28/2010

Question
You answered my question on 10/25/09 about what if any value this stock had.  You said my 200 shares were now equal to about 70 shares of Penn West Energy.  After all this time I've been doing paperwork and finally got the stock transferred to me but it was worth only one share of Penn West.  My question is how did you calculate that figure?  What follows is CIBC Mellon's caclulation.

Thank you for your e-mail. Please note below the exchange basis for Radiore shares to Penn West Energy Trust Units.


# of Radiore shares divided by 5 x 2 ( fractions up at .999 - down at .998 ) = PYX Exploration shares
# of PYX shares divided by 5 x 3 ( drop fractions) = A = Discovery West
Multiply A by .4452 (drop fractions ). That amount of shares receives $2.56 per share
Multiply A by .5548 ( fractions up) = B
Multiply B by 0.9846 (fractions up or down at .5) = Old Magin
Old Magin divided by 3 ( fractions up ) = New Magin
New Magin multiplied by 0 .29866667 (fractions paid at $19.62) = one Petrofund Unit

# of Petrofund Units multiplied by 0.60 ( fractions up or down ) = One Penn West Unit

If you should have any questions or require further information, please contact our Call Centre at .

Yours truly,
CIBC Mellon Trust Company

I'd just like to know if they are accurate.
Thank you,
Arnie Frieman

Answer
Arnie, I am only able to provide the information I have available. In this case, I don't have the information on Old Magin and New Magin. I also find it strange regarding their computation of the Discovery West from PYX conversion. My information shows that it was either a cash OR share option, not a combination of both, which is what they seem to be implying here.

I would ask them to clarify both of those transactions and see if they can provide you with more information.