ACU mkt cap $27m at 5c, page-6

Flawed reasoning.


It's been 2 months since the proposed acquisition was mentioned. Has anybody noticed that no bidders statement has been released?


Google's interest has changed everything.

The proposed acquisition was based in issuing shares valued at 2 cents per share.

Now we're rerating so ACU will not overpay for Plusconnect and will instead let the share price rerate and then vary the offer as they have the right to do so.

Do you think if we headed to $1 we'd offer 150m shares to Plusconnect valuing their business at $150m? Would be stupid eh?

So if we move to 10 cents per shares then Plusconnect will be issued 1/5 of the share under the current proposal. Plusconnect doesn't lose out as they monetary valuation of the business would remain the same.