ADN 5.26% 2.0¢ andromeda metals limited

Why? Can someone explain?, page-11

  1. 496 Posts.
    lightbulb Created with Sketch. 396
    To put it in very (VERY) basic terms, assume Company A and Company B each have a share price of $1 and each have 1,000 shares on issue - both have a market cap of $1,000 ($1 x 1,000), and assume they merge.

    The new Company AB now has 2,000 shares on issue, a combined market cap of $2,000 which means a share price of $1 (i.e. the same as pre-merger). This assumes no other market forces and everything else stays the same.

    In your assumption, it would mean that the share price of the merged company is $2 (adding $1 and $1), which means that because there are now 2,000 shares on issue, the market cap of the merged company would be $4,000 ($2 x 2,000 SOI). In simple terms that's incorrect to say that a merged company would have double the market cap assuming everything else stays the same.
 
watchlist Created with Sketch. Add ADN (ASX) to my watchlist
(20min delay)
Last
2.0¢
Change
0.001(5.26%)
Mkt cap ! $59.09M
Open High Low Value Volume
1.9¢ 2.0¢ 1.9¢ $51.23K 2.663M

Buyers (Bids)

No. Vol. Price($)
7 1006631 1.9¢
 

Sellers (Offers)

Price($) Vol. No.
2.0¢ 83388 1
View Market Depth
Last trade - 11.31am 30/07/2024 (20 minute delay) ?
ADN (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.