RE:RE:RE:RE:RE:RE:Would love to know....EuroTrashMan wrote:
Not sure what your reference to 36 cents is ??? Mkt price is 29.....you throw out a number 23% higher!!!!!!!!!!!!!!!!!!
And the implicit issue price of the shares being issued is approx. 28 cents. 28 cents!!!!!!!!!!!!!!! Pre money valuation of under $17 million!!!
You should read more attentively, then you realize what it's all about!
For you once again: <15 million shares equal 20% of the company; and that for CAD 5.5 million. This corresponds to a hypothetical company value of $ 27.5 million, or $ 0.36 per share>,
One word is very important: <hypothetical>.
That's not the current price of a stock, but a calculated possible value in the future.
Formula:
CAD 5.5 million (capital for new shares incl. ex warrants) x 100/20 = CAD 27.5m / 76m (number of shares after dilution)
But you are right: The current financing is not good for the old shareholders. The current price is CAD 0.29 and the implicit issue price is CAD 0.28. That's so, because the management have destroyed too much capital for nothing - except for their own pockets.
urai58