CASH POSITIVE CHAPTER - Divide Cayman Ltd, page-127

When Splitit was delisted there was roughly 553 mil shares on issue and the company's market capitalisation was $40 mil - a little over 7 cents per share.

Motive Partners bought $50 mil USD Preference Shares at 20 cents USD. Perea and Thorney were issued $10.2 mil USD worth of Preference Shares at 20 cents USD each. The capital of the pre existing Splitit Ltd company at 5 cents USD needs to meet the capital of the new Preference shares at 20 cents USD.

The entire capital of Splitit Payments Ltd - $25 mil USD ($40 mil AUD) is matched against $60.2 mil USD - Perea, Thorney and Motive to create a new company, as I said - which is Cayman Divide Ltd. 41% to Splitit Ltd to 59% Perea, Thorney and Motive.

The exercise left Splitit shareholders very badly diluted - 4 shares with only 41% of their former worth, which equates to about 10% of each share, which was trading at 7 cents when the company wa

That is the impact of the creation of a new company, and the issued capital of the old, merged with new capital, as has been done. It is a total disaster for pre existing shareholders.