not happy lion, page-8

The share consolidation is irrelevant. Forget what happened in your dark past with some company with shares trading at 1.5cent that did a 10 for 1 to allow them to issue more stock at a discount.

Catalpa is doing the consolidation to move away from being a speculative mining stock to something institutions would invest in. Even though it shouldn't matter, a "higher shareprice" will help perception in that respect.

The thing you ought to be focussing on is that Lion directors value their Cracow interest at $57m on the balance sheet but are exchanging Cracow for Catalpa's assets at an implied "valuation ratio" of 4.1:1.

In laymans terms that means if Cracow is worth $57m (which it ought to be given it generates 12-15m of profit per year) then Catalpa today is worth 4.1 times that (or $234m). Yesterdays closing market cap was actually $123m.

Either Catalpa are getting Cracow for a song (ie half the Lion's carrying value and less than 2 times pre-tax profit) or Catalpa is worth about double the current value.