Just see if I got my facts straight here This is a merger and...

Just see if I got my facts straight here

This is a merger and the issue will be 3 x DLS for 1 x GOG.

At present there are about 185 million shares issued for GOG
and 558 million DLS shares on issue.

At 3 for 1 GOG holders will get 556 million shares.

Total shares on issue will be about 1.1 biliion for the newly merged unnamed company.

While it looks like 50/50 there's the rights issue that needs to taken into account and that's another 500 million shares so more like 65/35. But that's purely a monetary value spin on things GOG may actually be bring more by way of tenements which may have more value to the merged Co than can be priced.

ATM DLS market cap is about $27m @ 0.049 and GOG market cap is about $25m @0.135. That's based on the pre rights issued shares.

I read the report and it looks like that DLS will have $22m to bank and GOG will add another $8m minus the $2.15m for the off market non-subscribed shares.

So about $28m to bank.

The only thing I don't know is the amount to pay off the existing loan facilities and other liabilities of Synthetic Options. What effect that has on the cash I don't know.

So that values the Co at about $80m minus any debt payments that was noted.

Yeah I hear the murmurs about too many chiefs etc etc but this does look like a good thing overall and should see the merged entity become stronger.

DLS has revenues of $15m (06/07) increasing to $18m this year (half year rep $8.9m) and the 52 week high was $0.18 and it's off it's 52 week low of $0.04.

Looks okay to me at this stage and we need to let it settle and give a go.

Would be interested in other people views and other info/discussion.

Cheers
BW