selling for a song, page-13

By way of clarification

JLP have 345m shares on issue and trading @12p = 18c = $62m market cap
PLA have 505m shares on issue. At time just before entering Admin (obviously a low point in PLA's history) market cap @6.7c = $33m, compared to over $2 per share in past

So ignoring the issue of any conversion of Macquarie debt into PLA or JLP shares, valuation of PLA on different merger share swap scenarios is as follows

1-1 = 18c per share for PLA or $91m market cap
1-2 = 9c or $45m market cap
1-3 = 6c or $31m market cap

When JLP first announced they had started negotiating with PLA, JLP their shares were trading at around 7p so 1-3 deal would have given PLA only a measly $15m market cap and shareholders only 3c per share. To extent Macquarie debt is converted into equity, I don't think the result for PLA shareholders will be worse net result of 1-3 based on the 505m shares currently.

1-3 swap would mean JLP issuing 168m new shares for a total then of 513m (excluding any conversion by Macquarie).

Hopefully JLP shares will rise to 20p when merger is confirmed as a done deal. That result if it's 1-3 (assuming the 345/505 issued ratio) would give PLA shareholders 10c pre share value in JLP shares, still a very poor result for money invested and potential but not too bad considering the alternatives in Administration.

20p per share would still only be a total $165m market cap for JLP, less than PLA alone. JLP should rise well above 20p per share once Smokey going again and profitable and JLP benefiting from PLA assets being combined with their own. So plenty of upside here if JLP know what they are doing.