MOO 0.00% 0.2¢ monto minerals ltd

Ann: Monto Commits to Acquisition of Rapidly Expanding ShareRoot, page-241

  1. 151 Posts.
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    Ill try and explain it with an example…

    Say you buy one million shares now at 0.005 (5k worth).
    Post consolidation you would have 22222.22  shares (one million/45). To break even you would need an equivalent price of 22.5 cents (0.005 times 45). They are issuing the post consolidation shares at 5 cents…
    Which means if the share price opens at 22.5 cents, the cap raise shares will already be up by 400%+.
    So if the share price opens at 22.5 cents the MC (based only on the 277mil shares , not options or performance shares etc) will be 60mil ish..
    If you bought at 1000000 at 0.007 then you’d have 22222.22 shares following the consolidation but need the opening price to be 31.5c (0.007 times 45) to break even. That’s an 87 mil market cap, again not including options or performance shares.
    Obviously if these are in the money (+ 120mil performance rights and 60milish options) the MC would be a lot higher.
    I’m also not sure if there is an escrow period, so I’m not sure if those 5c shares can be sold ASAP or not.

    So it comes down to what you value you place on the company and if you believe they are worth the indicative MC considering the post consolidation cap raise price.

    All these facts are my opinion. DYOR.
 
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