Ann: Rights Issue Prospectus , page-9

Net assets based on Dec 12 numbers leaves us at $0.28 a share based on S/H Capital structure to end of December 12 and assets as at that date.

Yes this is on the assumption that assets are liquidated at book value, but I have carried forward the assumption throughout for a comparison.

So what is the company worth with all these shares and options being thrown around, with the carrot of cash flow positive plant being dangled out there.

Now
584 Million shares - Net Assets (at book value) $0.28 per share
58.5 Million Options - not close to exercise prices (leave them out for a moment, I have left them out in the comparison below)

Future to Nov 13
1.2 billion shares (1 for 1)
plus
876 Million Options - @$0.08
plus
Convertible bonds (if they are not able to meet semi annually payments or other covenants of the agreement), estimate conversion at $0.08 767 Million shares


So....
Net Assets (at book value inc cash, excluding option) $0.18 per share
Net Assets (at book value inc cash, and options at $0.08) $0.10 per share
Net Assets (at book value inc cash, and options and convertable bonds at $0.08) equals$0.075 per share

So $0.08 not such an incentive in my mind to buy. If you believe in the story and management buy to maintain your holding after re-instatement when shares will trade lower than $0.08 IMO.

Happy for others to pick holes or raise other points to valuations if I have missed something. The aim is to take out the opacity and try and shine a light on what people are extending themselves into.

The things all this hinges on combinations of the following.

1) The plant continuing to experience no unforeseen incidents or down time and meet full scale production.
2) The bond holder and banks allowing Galaxy to keep trading if for some reason it does not meet terms of the bonds or loans.
3) The management meeting cost saving targets set out in the prospectus
4) The management meeting sales targets and selling all stock made at Market prices or above.
5) Market prices hold up above costs which is but a small margin of about 28% gross. Remember April 2013 cash flow positive result excludes sunk cost of stock feed). So probably not really cash flow positive yet.
6) Trust management who have put the company here
7) Successful divesting of "non core" assets that management borrowed and issued shares to get.

Questions outstanding:

If the result of the plant shutdown is the reason the company is is now seeking $46.7 million in dirt cheap shares from it's shareholders, why are they not chasing the contractor / designer of the plant for compensation or calling on the insurance for what it has cost the company and the lives of staff?

Why are they not trying hard to sell "non core" assets fast before asking to dilute the business to nothing.

Yes I will ask the questions directly.

Good luck to all holders. I am in the no column for this offer .... cough cough, threat of closure.