No sense buying much over 2c, page-7

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Fibonarchery

12,525 Posts.

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16/01/15

19:26

Post #: 14596834
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Originally posted by GreenTuatara ↑

There are currently 130m MRY shares.

After the reverse takeover this will be diluted to 668m (187.5m coming from a raising at 2c, the other 350m is effectively Norwood, who now control MRY, issuing itself 350m shares in the new company - which is normal and how a reverse takeover works) plus another 150m preferred shares that will be converted to ordinary shares if Noorwood:

1) "Are awarded two separate ‘Material Contracts’ whereby a ‘Material Contract’ is defined as a contract with a third party which generates gross revenue to Norwood of at least $200,000 in any 12 month consecutive period" (For 75m shares)

and

2) "generate gross revenue for any 12 month consecutive period of at least $3.0 million" (for another 75m shares)"

So easy targets you'd hope - that gives 818m shares. (more than 6 x currently in existence)

Plus there will be 43.6m options exercisable at 2c (and another 9m options exercisable from 2.5c to 4c).

So to think you need to rush in and pay 50% above listing price now seems quiet illogical given there will be so so so many more shares coming on the market for a maximum of 2c.

Please let me know if there are any flaws in this breakdown.

Expand

At current prices Norwood once listed as NWD will have a market cap of about $22million with $4 million cash.

That's worst case scenario - if raising does indeed go ahead at 2c and not higher.

Re performance and milestone shares - always more than happy for the targets to be hit and shares issued.

Norwood is a$50 million company as is imo, hiding in a $20 million market cap body.

MRY Price at posting: 3.3¢ Sentiment: Buy Disclosure: Held
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