exergen flyer - announcement, page-4

So Exergen want $100mn as a loan.

As part of their pitch they quote an NPV of $1.4bn (Exergen $700mn / MNM $700mn) for BM.

So Exergen believes they can borrow $100mn as a result of BM - yet this is 4 times MNM's mkt cap.

So half of BM is worth at least $100mn to Exergen (amount of the loan request) and apparently worth almost nothing to MNM .... yet it is the same tennement.

This does not make sense, either the cap raising will fail as lenders will not agree withe NPV for BM - or it will succeed in which case MNM needs to be seriously re-valued on BM alone.

If RFC is successful they will have effectively started the monetisation of BM to the huge benefit of both shareholders in BM.

I hope they do it speedily.

EB