2021 BRN Discussion, page-31788

I do not want to seem flippant but if I walk into Woolworths and say I will give you a $1.00 for your $2.00 can of drink they will show me the door.

Just because you receive an offer it carries absolutely no obligation to accept. In fact having now presented shareholders with a valuation of $1.50 from Pitt Street Research that they have paid for and recommended there is no way they would get an offer of 90 cents approved by the Court.

In fact shareholders have a right to vote and also to petition the Court hearing a takeover approval application.

So on the present state of the nation using your 50 percent premium the offer would have to be $2.25 a share to have any chance of being considered fair.

However in my opinion that since the Pitt Street Research valuation the various price sensitive events which have taken place including the appointment of the CEO and the MegaChip four year IP sale makes the $1.50 number redundant and it would need an adjustment to reflect these changes.

Now also consider that for the purpose of the Court's decision as to the fairness of an offer the petitioning shareholder/s could seek orders for its own expert/s to be given access to the financial detail of the Renesas and MegaChip deals and the present situation of the various EAP's the whole idea of 50 percent is actually meaningless as a premium. There would also be the need for a valuation of all of the patents both granted and in the pipeline particularly with regards to the cortical column Artificial General Intelligence research.

There are some very sophisticated retail shareholders who would not let this golden goose go for some beans on the way to market.

My opinion only DYOR
FF

AKIDA BALLISTA