RE:RE:RE:Merger DD: Pre-Merger Financing Is Good For SGNLAndre, I do appreciate your posts. It makes sense.
Perhaps this would make sense as well.
ps. I won't tie up the board tonight :)
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DDD's post today
DoumDiDoum wrote:Now that we know that both financings were over subscribed, if we plug the new numbers in the calculations I suggested earlier, the new numbers give the following calculations: SGNL will have close to 118.9M extra shares, for a total of 373.9M shares after the deal. NEXG, now that the FT offering has been increased to 10M shares, would have a total 86.21M shares post-merge. SGNL shareholders will then add 46.51M shares (factoring in the 0.1244) out of the 132.72M shares for the newly merged company which represents 35%. At today’s NEXG's market cap of $61.73M, that represents a market cap of (If X is SGNL MC then X=0.35×(61.73+X))=$33.24M for a 13 cents share price.
I still think that buying shares on the market is quite good for new comers and existing shareholders that cannot participate in the financing. The 13 cents today is even good for warrants holder if the merged company keeps the same market cap bottom than currently.
I did add some more yesterday, selling my position in MAE to swing trade in SGNL, as I saw my 8 cents bid filled just before the pop.
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Two things that you may have erred on.
"At today’s NEXG's market cap of $61.73M, that represents a market cap of (If X is SGNL MC then X=0.35×(61.73+X))=$33.24M for a 13 cents share price."
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You are using a number of 118 million new shares for SGNL, when the amount of the increased placement is 103 million with the increased option for up to 15 million more shares. There is no guarantee that it will be 118 million.
The other and equally as important or more. When you do your calculations. You are comparing SGNL when you do your math. And you come up with 35%. But that is assuming 118 million share dilution for signal, versus the 103 million in the release last night. So the 35% at this point is actually closer to 31%.
And you are using SGNL numbers post merger and their "piece of the pie". But at the same time using $61.73 million for NEXG. With NEXG you are not including the value that would be added to them from their raising of $8 million dollars. Add that on and the GENX numbers would be about 15% higher at $70 million.
So that is two errors of close to 15% each. Close to a 30% error in your conclusion.
I stand by my statement a week or two ago... at this point it is worth about .095 per SGNL share.
That is not apples to apples.
Good Luck