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Signal Gold Inc T.SGNL

Alternate Symbol(s):  SGNLF

Signal Gold Inc. is a Canada-based gold development company. The Company is engaged in advancing the wholly owned Goldboro Project in the Canadian mining jurisdiction of Nova Scotia. The Goldboro Project is an advanced exploration and gold development project located approximately 175 kilometers (km) northeast of the city of Halifax, 60 km southeast of the town of Antigonish, and 1.6 km north of the village of Goldboro, on the eastern shore of Isaac’s Harbour, in Guysborough County, Nova Scotia, Canada. The Company has consolidated approximately 28,525 hectares (285 km2) of prospective exploration land in the Goldboro Gold District.


TSX:SGNL - Post by User

Post by shiftyoneon Oct 26, 2024 9:25pm
119 Views
Post# 36283726

OK..I'll try to respond DDD in a ..civil manner.

OK..I'll try to respond DDD in a ..civil manner.BTW, feel free to correct me.  You wouldn't believe it.. but after I got a BSC in math, I spent 3 more years studying advanced calculus.  Advanced statistics.  Advanced linear algebrae.
I chose those subjects because it was what I would say came easy to me.  But with all the abusing myself over the last decades... if you were to show me an integral I wouldn't know what to do with it.  But I will try here to relate to the math.


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DDD said.
f 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.

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With the upsized and oversubscribed placement by SGNL a couple of days ago, they will be issuing 
103,388,857 new shares of SGNL.  At a price of .08705.  Along with that, there will be over 50 million full warrants.  But they will not be included in this.  I'm trying to follow your explanation. (It's not explained in the most simple of terms for me).

So we plug in the numbers.  (using your numbers for some)

SGNL will have 103.4 million new shares. 
For a total of 373.9 million.  Subtract 118.9 million shares as you stated.  Add 103.4 million new shares as the release stated 2 days ago.  358.4 million shares as of the news release.

So Sgnl has 358.4 million shares outstanding at the time of the transaction.  (it could be more, but that is the latest release a couple of days ago.)

NEXG will have 86.21 million shares (not post merge, but immediately prior to the merge, after the financing.)

Sgnl will add 44.58 million shares to that.  (358.4 million * 0.1244).

So the total number of shares in the new NEXG will be 86.21 million.  Plus 44.58 million.  That is the new NEXG will have 130.79 million shares.  (I did that one in my head, so it could be wrong)

So new NEXG has 130.79 shares.

So SGNL will own 44.58 millon out of 130.79 million shares.  That is 34% of the new company.

Using your OCT 15 numbers, NEXG should have a market cap of approximately $62 million, plus the $8 million they raised, for $70 million market cap.


 that represents a market cap of (If X is SGNL MC then X0.34×(70.00+X))
X= 21 + .34X
0.66X = 21
(X=21/0.66) = 31.81 (million)

So X being SGNL share of the new company.

$31.81 million, divided by 358.4 million shares.
That equals 0.0887 cents per share.

We are following he same process, but just coming up with numbers that differ by a lot.  What am I doing wrong with this calculation?

You say 0.13 cents a share.  My math says 0.0887 cents a share.  Which is about the price of the SGNL financing, so that part makes sense to me.

PS.  Sgnl has the option to sell another 15 million shares, which will mean they have over another $million dollars to contribute to the new company.  But the numbers don't change much.

And don't forget... the 6% finders fee will take away about a million in value from the company.  

Thanks.. I like when you question me.  I learn.  And I like when you respond to my questions to you as well.  






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