Purchase is paid by all scrip. Sellers, MGL share holders, become SMI share holders. Whether they sell out on market or hold on to SMI shares could make major difference to our SP.
Post consolidation and issue price of 20c makes the purchase price of MGL to be at 7.64 Mil. ( 38,189,017 x 0.2 )
As soon as consolidation of 70:1 is approved, considering present market depth remaining same it will quote at 21c (0.003 x 70 ) Buy. Would not see quoting 28c ( 0.004 x 70 ) on sell side.
All depends on how well the CR is taken up by the sophos in them wanting to pump. They have to consider dump from new share holders of MGL. Also have to keep in mind that being at 20c there is now so much room to move the SP down and keep issuing new shares.
Lot of possibilities. All in the hands of those funding this $ 7.5 mil raising.
SMI Price at posting:
0.4¢ Sentiment: Buy Disclosure: Held
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