MEP (ASX) MEP or ADN

You guys do not take into account the problem of capital gains tax and the desire for a continuation of current lifestyles and careers of the current board and management.

Do they have our interests at heart? Qustionable given they don't seem to understand the transformation that is happening to the company because of halloysite, or, do not know how to communicate to the market.

For example OAR is 40% of MEP MC by telling its story, which in fact is not much of a story at this stage.

PNN today announced it has an option over some moose pasture in SA. MC is now >$10m.

A sale of 25% of the JV to ADN would be a disaster as it has massive CGP consequences.

The uplift in value of the JV is enormous. Remember, in its wisdom, the board sold 75% of the JV to ADN for $6m. The ADN MC has risen from near Zero to $500m! James Marsh knew the halloysite was there. It did not take much homework or subsequent drilling to prove up what we now have.

And all of this without Camel Lake where we know from historical records that there is up to 80% pure halloysite. The people that know can't wait for access to Camel Lake. James Marsh has called it "the holy grail of halloysite". All of this given away for $6m!

An all-scrip 3 ADN for 2 MEP MERGER has these advantages:
- no CGP event for MEP shareholders
- no CGP event for the assets since they not yet sold
- since most/all of the other non-HK assets in ADN & MEP are 'early-stage' projects they have minimal value so rolling them into a new SpinCo will likely not trigger much if any CGP. I suspect most have capitalised losses
- Spinco becomes a vehicle for the old MEP board. No need to have them on the ADN board. Andrew Woskett and his board and management have on-going careers and guarantees on their lifestyles. That is important to getting the deal successfully completed as a Scheme of Arrangement requires 75% approval from all shareholders and is unlikely to succeed without 100% endorsement from directors.

All the talk of hostile takeovers, 1 for 1 offers etc are just hot air IMHO.

A deal will get done because both sides have appointed corporate advisers in recent weeks and what else would they have to do?

Waiting patiently,
HK