RE:Board Is ConfusedGreenday wrote: FCU is the buyer. Not the seller. DML is the seller in the deal. FCU shareholders will receive 1.26 shares of DML for every share of DML they hold. In essance FCU used PLS as equity to buy DML and DML gave up 18% of their company to particpate in FCU. FCU shareholders lose nothing. All the dilution that has occured in DML in the past is in the past and has nothing to do with FCU shareholders. A new company is going to be formed with the assets of both companies in it and the hope is that it can move forward with minimal cash burn and issuance. If it can than it's a good deal for FCU shareholders. If it cann't then that's when it becomes a bad deal for FCU shareholders.
First PLS was the pie of FCU shareholders. Sure the pie remains the same but now you are gonna share it with another person. Jep the pie remains. But when you want to sell that pie, you will get half as much as before ON YOUR SHARE. Of course PLS itself wont devaluate. But the fact that the buyout price will be spread across 500 million shares will definitely make a difference ON YOUR PRICE / SHARE buyout price. If they decide to do a reverse split, then your amount of shares will be cut in half as well. Its really that simple. In other words you found gold in your backyard and you decide to give yout neighbour 50% of the shares. Sure the gold discovery remains the same, but the amount of money you get for it will be cut in half. UNLESS your neighbour brought in a discovery of its own, EQUALLY valuable. Which in DML's situation isn't the case. 22.5% of a mill that earns DML 2 million per year (or 0,002 per share at 1000 million shares), a 60% interest in the wheeler project (70 million pounds) and some undesired african adventures.