GTEC Holdings Ltd GGTTF

RE:seeking alpha article

[stokpiker]

I don't understand how they calc the conv ratio in the seeking alpoha article. 
From the article:

With the assumption that GTEC shareholders will own 40% of the combined company based on issued shares, we estimate that each GTEC share will receive 0.6142 shares of Invictus shares

I used the weighted trading avg to calc a ratio of .785 which was a rough guess

I'm not sure how he decided to use issued shares, there was nothing about that in the NR which is why I tried to use weighted avg which was in the NR.

And even using issued shares the seeking alpha calc appears to be wrong unless there were a lot of shares issued by GTEC after their Aug 31 financials.

I'm not sure if GENE/GTEC plan to use issued shares or fully diluted but it's an easier calc using shares so I did both 

From financials Oct 30 for GENE and Aug 31 for GTEC

Issued shares - 112 mill GENE, 83 mill GTEC 
74 mill GENE shares to GTEC holders so they own 40%
.89 ratio of GENE shares for every GTEC share

Fully diluted - 128 mill GENE, 116 mill GTEC 
85 mill GENE shares to GTEC holders so they own 40%
.73 ratio of GENE shares for every GTEC share

It makes a big diff whether GENE/GTEC use issued or fully diluted shares but both ratios are better than the ratio used in the Seeking Alpha article

I now have 4 possible ratios, for each I've calc what GTEC price should be today wiht GENE @ 1.20 and if the deal closed ratio - GTEC price today
.89   -  1.07  using issued shares
.785  -  .94   using rough weighted avg from NR
.73    -  .88   using fully diluted shares
.614  -  .74   using seeking alpha article

mgmt really needs to get a NR out with the actual conv ratio, they can't leave this hanging forever without some clarification