merger to go ahead, page-2

Ha ha, good one Gregke!

I'll have to wait until the weekend to digest all that info. Had a 5 minute glance and these are my initial comments/thoughts:

- the proposed acquisition has got the support of the non-independent directors and the Indep Valuation Experts - but it has to go to the vote next month, which should get the support needed.
- DIG is buying three digital entities for $18.5m by issuing 930m shares to Co-Investor @ 2.0c.
- provides DIG with access to the huge Asian digital advertising market...

I think it's a no-brainer. If shareholders don't support the acquisition then the share price of DIG will likely fall back to the sub 1.0c mark. But it now looks like it will definitely go ahead which is great news as the potential for DIG to grow will be much greater.

I can't see the share pirce doing too much in the short-term though. The deal has to be voted on first and then there are always restructuring issues to sort out etc. We've also got a dilutionary effect by the issue of new shares but I think this is offset by the fact that we have bought 3 growing digital companies and now have access to the large digital advertising markets in Asia.

I'm certainly going to be backing them to get it right and will be holding on for the ride over the next 2-3 years. I still think that Co-Investor's end game will be to initiate an American or Asian company with big pockets to take DIG over once DIG is humming. Co-investor have invested in DIG since 2008 and will be wanting a decent return on the time, money and energy they have spent on the company over the past several years. Co-Investor's avg entry price into DIG is about 2.2c (investments over the years of 3.0, 1.8 and now 2.0).