The Urthecast Arrangement It is complicated and I am not going to trace through each step. The bottom line after the arrangement is completed ( and it likely will be given the support of the majority shareholders ) is:
1. The total issued shares ( excluding incentive warrants , options RSU's etc numbering 10.6 million ) will be 59,500,000.
2. The existing LFD shares will be consolidated on a 13.55 to 1 ratio. The existing LFD shareholders will receive @ 13,700,000 of the 59,500,000 shares ( 23 % of the total )
3. Urthecast has or will issue $27,700,000 worth of shares at $1.85 each. These will be part of the 59, 500,000 shares issued indicating that the promoters of this deal expect the consolidated shares to be worth at least $1.85 each or a value of $.136 for each existing LFD share ( essentially LFD's existing cash value )
4. The new LFD / Urthecast will have cash of $51,500,000 ( $ .865 per share ) to pursue its business plan.
5. Bottom line is that LFD shareholders have exchanged 53% of their cash ( @ 13,700,000 ) for a 23% share of the Urthecast business.