correct calculation - worse then you think

This is how I believe the calculation to be: these people are offering 1 cent per share (post takeover). These words in brackets are important. They are offering 1 cent per share after your shareholding has been diluted by 13 times!!

Let me simplify with an example: if you hold 1,300,000 PDY shares, divide this by 13 and you will have 100,000 FEL shares at the current price of 10 cents per share. FEL will then pay you 1 cent per share which means 100,000 x 1 cent which is equal to $1,000.00 cash. Absolutely dismal!!

If FEL were in the position to offer a premium for PDY, don't you think they would have explained their figures better in the announcement instead of letting everybody work it out for themselves and end up with conflicting or confusing figures? Wouldn't they promote the value to shareholders instead of purposely leaving us in the dark?

If they were to offer 1 cent per share now, they could not even afford it. FEL has about 1.8 million in cash as per their last quarterly PDY has about 1.3 billion shares on issue. Pay 1 cent for these shares and FEL will need to fork out $13 million dollars in cash. Where is that money going to come from? They will be short about $11.2 million dollars!!

Read between the lines people. This is a desperate attempt for people to takeover a company which is now poised in a prime position to offer significant shareholder returns. This has been achieved by the current management, not the previous management or people that are trying to get into the box seat now.

The real value of this offer is about 0.85 cents per share!! Who would be happy with that? Certainly not me!!