Bratt, with the number of shares already on issue, my best guess would be that unless it's a real stinker of a project, it will likely trade similar to DUO, GAL, XTV, i.e. between 1-2c, with quite a bit of volatility.
640M fpo currently
+ 200M vendor shares
+ 200M CR @ 2c
= ~1B fpo MC @ 2c = $20M
Cash = $1.4M existing + $4M from CR = $5.4M EV = $14.6M @ 2c
The above would seem pretty reasonable to me and definitely not a stretch for a reasonable looking project with a tech/bio focus. But i could be very wrong. On the down side, it may be a stinker due to either the project being boring or the vendor/CR terms negotiated being too dilutive. On the upside, it may perform beyond our expectations if it's an exciting business in the right space, e.g. SOR, BRN, KNE, POK etc
RYG Price at posting:
1.1¢ Sentiment: None Disclosure: Held
