RE: OK..I'll try to respond DDD in a ..civil manner. Shifty:
DDD,
"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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that to me is good news, but terrible news to me at the same time
:(
Does that mean the almost 50% they are diluting SGNL before the merger is fair?
Note that my suggested calculations were done only to take into consideration what is representing 0.1244 if we add the over-subscribed concurrent financings base on this statement in the original merger NR published by both companies:
"Upon completion of the Transaction, existing NexGold and Signal shareholders will own approximately 71% and 29% of NexGold, respectively, on a fully diluted in-the-money basis"
Using the formula I suggested, the number of shares that will be created in both financing will change that 71/29 ratio. If you plug the current market cap of NEXG in there, as the 0.1244 is applied to determine SGNL share price value, then it gives about 13 cents. Is it good or bad? Well, I already expressed that it's good for new shareholders (as yourself) but less so for existing ones just sitting there doing nothing as their existing share of the pie will be diluted.
Shifty:
The financing is for 8.7 cents. With a half a warrant at .118.
So if this is worth .13 as per your calculations. The warrants are already in the money. The 8.7 cent shares you say are worth .13. A gain of 4.3 cents, or 50% more immediately. Plus the warrants.
And the 50 million warrants from the SGNL side do add to the dilution, and eventually there will be a cost to the new company because of those warrants.
I agree with most of what you're saying except for "there will be a cost to the new company because of those warrants". Warrants will bring money in the treasury so the cost will not be for the new company but for the shareholders as they will be diluted again.
Shifty:
Are you sure that it is worth 0.13 a share? Because if it is accurate, well then somebody negotiated a terrible deal.
Almost a 50% dilution.
Do not forget that 13 cents is related to the actual value markets are giving to NEXG. We do not know what will be the value post-merge. Did the markets already started to factor in the prospect of adding "such a unique asset" to its portfolio? Are all the interviews done by Morgan are bringing new people in the story?
The more I'm digging, the more I'm thinking that existing SGNL shareholders are not being considered at all in that deal. Good news are that we are the ones voting on December 4th. I'm still not sure about the way my vote will go as I'm still digging for my DD (making sense of the debt restructuring and assets comparison), but the needle is starting to go in a direction right now.
Shifty:
Can you check your numbers again? I've been hard on myself. I can't figure that hard math out in my head anymore.
Thank you for your contributions.
I saw you did another post regarding the calculations. I will go through it later as I do not have the necessary time right now. Or perhaps someone else could go through them?
Thank to you for accepting to bring the discussion to a respectful and constructive level.