Unfortunately for both Stratex and Crusader shareholders the...

Unfortunately for both Stratex and Crusader shareholders the Stratex share price has fallen again today. It now values 'the deal' at just under 15c (Aussie)

Basically the deal proposed is deemed exceptionally poor by Stratex shareholders (based on bulletin board postings) and some are selling, it seems the company has, more or less, decided to wipe out existing shareholders by pitching the offer at a 12 month low and by the massive dilution ahead.

In pitching the deal at 1.55p per share the directors have priced it at Stratex's cash position, namely circa £7m. They have not put any value in the other assets, Stratex stake in Thani-Stratex could be worth £4m-£5m alone, Stratex has put £3m+ into their 30% stake in Goldstone Resources - there are other projects/assets which Stratex has put significant money into. They have given them away plain and simple. Stratex shareholders only get 19% of the new company after-all.

The 'problem' for investors is what is a fair entry point for buying Stratex shares currently? I would suggest that at 1.3p (they were 2.5p in Q3 2016) that time must be pretty close. The remaining premium for Crusader shareholders would be wiped out if Stratex shares fell to 1.1p (unlikely however)

In conclusion I doubt Crusader shareholders will see much short term share price appreciation until the new company is floated in October/November and more is known operationally and financially.

Existing Stratex shareholders would need the new company to be valued at £50m just to see 2p per share, without the deal a market cap of only £9m would be needed to attain 2p. That is how bad the deal is.