Budd: In the hypothetical scenario where firm XYZ would cherry pick assets of SKTO/AEGY and offer shares of XYZ in consideration, it's more the potential value of the assets to XYZ that would be offered. How to allow for growth potential in a fair exchange?

Some reasonable expectations of growth would have to be built into the basic transaction.

If the transferred assets multiplied value, market value of XYZ should grow, too. XYZ stock compensation for SK/AE assets could also be packaged with XYZ warrants with laddered strike prices higher than market price of XYZ at time of distribution. As XYZ grew, benefiting by SK/AE assets, and the price of XYZ shares rose, the value of the warrants would reflect it.