Ann: Trading Halt, page-9

I went through all this with Zenith Energy. A report will come out (paid for by Mac) saying what a great deal this is. Zenith Engergy was sold about 20% under fair value, because the report said the Risk Free Rate of Return was like 5% in the market. So the first 5% of any return you get from your investment is risk free. You can get that ANYWHERE, risk free. Which is not true. But buyout private equity firms use that to be able to buy companies way under price.

Then next year, when they are making 10 or 12%, you are told your cash (which is 10% over the net assets) should be making 5% risk free. You will be told, in this case, you are getting a 25% sugar hit. So now you have 125% of your money. And you can make 5%. So they will tell you that you can go into market with your money and MAKE over 6%. So they say 'you need to allow us to make 10 or 12%, because we (the buyer) is taking on risk'.

I hope I explained well.

If you do not accept the offer, the buyer will say 'oh, your share will go back to 78 cents'. So best for you to accept. (and that may be true!)

Each person can make their decision. But you will be selling unders. A private equity firm NEVER comes in and offers the fair price. Now the fact that you may have bought an under valued share is good judgement by you. You may be better to take 25% now and go back into the market with that money.

It is all your choice. But it is a good choice either way. You now know your share was way under priced when you bought. Good for you.