Another way to look at it...SGNL has $22 million worth of equity if it's a $50 million dollar project.
NEXG has $55 million worth of equity if Golaith is a similarly valued project at just over $50 million.
Sp perhaps the 29 vs 71 split is reasonable.
But so much for SGNL being significantly undervalued at this price as has been stated. If significantly undervalued, why sell it for that price?
This is the offer they received.
There is so much to consider here. How many shares of NEXG will their be after the merger? After both companies further dilute with their fund raising. 120 million?
I have to think more about this one. Should the combined company start out with a market value around $100 million? Would SGNL's share be $29 million? $29 million over what will be close to 330 million shares?
That would be about .095 a share??
But the placement is being sold for .087 with warrants?
Is the value of this about 9 cents for SGNL shareholders at this time?
It's a gamble that with the merger they can cause some excitement and the price goes up?
That could explain why there is 4 million shares showing on the tsx for sale at .10 or less.