Ann: Recapitalisation Agreement, page-191

Hi Nick

I was surmising using the alleged value the lenders put on holding 95% of SGH shares.

The agreed value (my rough calcs) put market cap at $300m once debt is retired so in essence current SP will go to roughly 10 x current MC or say 90c.

As debt will be retired the SP will be 80-90c IMO, but if you buy now at say 9c, your shareholding will be diluted in effect down to 5%.

So your 100,000 shares will become 5000 shares if they do a reassignment of shares.

So 100,000 at today 9c is worth $9000
Your 100,000 becomes 5000 at 9c = $450 x 10 (10 x increase in market cap) = $4500 at say 90c.


So what i'm saying is it's best to buy after the recap IMO for anything under a market cap of say $300m, might look attractive.

How they divvy up shares by increase or consolidate or some other way is irrelevant, the market cap is the reliable factor.