There is no advantage for AUM in having ECU lower or vice versa. The merger conditions have been set at 20 to 1. There may be an advantage for any funds/institutions looking to provide capital in the future to AUM after the merger, as lower is better for them especially when or if they know the value of the combined assets is worth so much more and how easily they can move it higher when they are ready since there will only be about 33 million shares out.
The same applies for any hedge fund institutional shorts as they will press for a piece of any financing in the future. AUM has pretty much led ECU down this whole time since the announcement of the merger and those retail people dumping their positions have assisted this move down.
In my view this merger is highly positive for both companies and will pay-off in a big way for those investors/shareholders that stay the course or add to positions. The amount of silver equivalent this combined entity will demonstrate in the next couple of years will shock those not paying attention plus quickly growing/expanding production on 3 projects over the next 3-5 years will make AUM/ECU a strong mid-sized precious metals producer. This story has all the makings no matter what the market says at the moment and I'm pretty confident they can execute the growth story. I still look for many times my money invested here.
