Ann: Crusader and Stratex sign binding Scheme Implementation Deed, page-23

sci9249

I think it is fair to say that shareholders of both companies need to be patient. To answer your question I think the Stratex share price will remain pretty dormant until investors get a better idea of the plans for the new company but you can never tell on the AIM market, Stratex could announce other news from their plethora of projects.

Stratex attended a pre arranged presentation event in London last Thursday, I had the opportunity to speak to CEO Marcus Englebrecht for around 1 hour afterwards, he was appointed 10 months ago.

What I can say, with some confidence, is that I feel more optimistic I will eventually recover my full investment once the new company starts trading on AIM, planned for October. To do this I will need the new business to reach a market cap of £50m, with 122m new shares in issue that would equate to a share price of 40 pence. The combined market value of both companies now is £29m for example.

Another presenter on the evening showed the chart (below) In the case of Crusader Marcus stated he felt Crusader are in the 'institutional investor' area. He is gagged over what he can say but it makes sense as Crusader shareholders are aware they need funding to move their significant projects forward.

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I think, under the right circumstances the new company could offer significant upside and it is, in my view, likely to happen.