RE:RE:RE:Merge With MAE: What Should Be MAE's Part Of SGNL
DoumDiDoum wrote:
Grumpy, you did not actually understand what I'm trying to do as I do not want to use netiher the market cap or the number of shares which are values representing what the market gives to both companies. I think I explain clearly that I want to let those factors out of the picture. The objectif was to find the percentage of what MAE represent as a company (not market valuation) compare to SGNL.
Just so I can understand how you arrive at a 4 cents offer, can you please detail your calculation?
Thanks for your inuput.
I was not criticizing the different factors you put forward in trying to establish a realistic comparative value for MAE in relation with SGNL. The problem I have is that you state that a reasonable value would be around 20%, but by giving 0,2 shares of SGNL for each share of MAE you end up with 80M new shares for MAE's shareholders compared to 193M for current SGNL shareholders. If you value MAE at 20%, you have to issue shares in accordance. That would be about 40M shares of SGNL. That's 0,1 share of SGNL for each MAE share, or about 0,04$.
It's not a question of premiums, discounts, market caps or number of shares, it's a question of RELATIVE VALUE between the two companies. If you say that MAE is worth 100% compared to SGNL, then you should end up with the same amount of shares for each group. But when you state that it's worth 20% of SGNL (5 to 1), then you have to compensate with the corresponding number of new shares in exchange to end up with a ratio of 5 to 1 after the merger. Sorry, but the numbers you give don't work if you say the relative value is 20%.