kcg : a couple of questions, page-18

Hi Yak,

Good, but not to the extent claimed by The Optimist. More likely, only to the low to mid-teens (at best), with a further spurt on closing the deal, and then when the first instalment payment is made.

What I like is that it sounds real, even if more detail /explanation is required.

What I do not like is the price.

@2c, this is highly distortive, disruptive and dilutionary to the existing shareholders. The share price was last at (or below) 2c in August 2003 (18th). Since then, the next lowest price has been 3c (which occured on 26/11) and in the last 2 months the share price has averaged 4.3c (45 day MVA).

Pricing the deal @2c is handing a more than fair advantage to the vendors (for introducing, but not completing on their own deal). Of the various amounts being paid, there is the small amount of $900K in tonight's closing price terms, being paid to the dealmakers @ Attfield.

The deal has substance, but it is still a long way short from being consumated, and the ore extracted and banked.

Simply put, in amongst all the other questions being asked, one must also ask why the deal was priced at 4c instead of:
1)
a higher price (ie: 4c+); or
2)
a some moving average price in the 'x' days leading up to the announcement (etc).

At the moment, a substantial windfall has been handed to the vendors in what is fast amounting to a reverse takeover.

As I like the prospect, but not the pricing on offer, I am being somewhat difficult to please.