The share consolidation is irrelevant. Forget what happened in...

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.