In my view, an asset sale would be the smoothest road to travel, and the way that avoids butting heads with the SEC and CSA. That's a fight doomed from the outset. The problem with both tickers has been the inferior quality and the lack of fidiuciary awareness of self-serving management teams, not to mention shadowy IEquity Group's direction from behind the curtain.

In the hypothetical scenario where firm XYZ would cherry pick assets of SK3/AE and offer shares of XYZ to SK3/AE shareholders 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 SK3/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 SKTO/AEGY assets, and the price of XYZ shares rose, the value of the warrants would reflect it.