yes, but they are paying for an asset that has value. They arnt...

yes, but they are paying for an asset that has value. They arnt just issuing shares for the sake of issuing shares. If that was the case, then the share price would get even more smashed than what your suggesting. Therefore looking at the market cap without looking at the acquired assets is pointless.

If the asset is worth what they are paying for it, then nothing should happen to the share price theoretically IF the new owners of the shares do nothing. If however LMP has overpayed for the assets of LMPCSG then the share price will come down until the market sees the total LMP assets fair value - as the new owners will sell their stock. If they underpaid and it was a bargain, then the share price would actually rise.

I dont know why the company ran up to 16cents or what makes management think they paid a fair price - and even though they abstained on the decision there is still a conflict of interest. Overall management have disappointed so i made sure i sold some into that previous rally as insurance.

I will keep the remainder as my broker is rarely wrong.