Thanks Squash,There is another similar yardstick for determining...

Thanks Squash,
There is another similar yardstick for determining the future spinout. Mr Buckhorn held about 11% of Heron. When ARL floated, he bought enough shares to maintain an 11-12% stake in Ardea. As you can imagine, it was quite a costly exercise, something like a million dollars, at spinout, and a further 2 million for options. So Ian has some $3 million+ invested in our project. If he maintains form and wants 11% of the new company, a 1 in 5 allocation would give him a 20% stake, which would be diluted down to 10% if there is a $5 million cash raising at 20c per share. So your numbers seem reasonable enough. Thanks,
BE