Yeah agree with Angry, this one is a perfect shell/backdoor...

Yeah agree with Angry, this one is a perfect shell/backdoor listing play, not a fundamental play (well not yet anyway until the acquisition ann), u need to compare this one with the likes of AEX, GLA, SHE etc.

Things I will be focusing on:

1. Definitely need enough cash to keep the company floating. End of Dec 400k + 1.3M before issue costs + recent director options exercise 30K, I would say a comfortable cash level of at least 1.5M ATM (with placement options already in the money too). Net cash backing wont be high if that's what u'r trying to imply.

2. Tight register with the pros hopefuly controlling the vast majority, so they get enough votings on acquisition approval (dont think this is a problem now with the recent placement), also hopefully they'v soaked up enough of retail shareholders' free floats, creating less selling pressure when they want the SP to move north.

3. Most importantly, id say the quality & size of the acquisition & their internal & external business development plans after acquisition is key. If there's a great chance that the project will bring significant future positive cashflow & further development potential, then I would expect significant re-rating.

So that's just my thinking, hope it helps. Risky but potentially rewarding play IMHO.

GL
JL