dilution scenario

HI everybody

I have a theory

according to latest news there will be a dilution ratio for us of 1:100

"Existing shareholders will retain an interest in Mirabela of approximately 1.0% on a fully diluted basis."

Correct if I am wrong:

If you have 1m shares now - you end up with 10,000 shares in a dilution-value scenario.

OK - if we assume the new share price will reflect the value of the new company under new fortunes and better Nickel price I would value debt free Mirabela at 500m sometime within 3 months if Nickel stays good.

This could re-price SP to 50c or more. Totally forget current 1.6c - that's in the past.

So your 10,000 shares could be worth $5,000 or even 10,000 if SP climbs to $1.

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Another way to derive this: Co value now 17m - in future 500m ?? - ratio 500/17 = 1/30

1/100 your dilution against 30 value increase - your disadvantage 1/3 - so your shares could be worth still 1/3 ????

It would be nice.....


Your comments please: