the higher she goes...the more its worth...

Been giving it some deeper thought...

This arrangement is brilliant!

When buying CVI shares, you are buying Pensador shares...the higher the CVI shares rise, the more valuable they become via the lower diluted entry into Pensador.

The higher the CVI price, the more valuable they become.

Think of it like this...how much would you need to buy up and corner the CVI stock on market...$60m...$40m...$20m...chances are it may even be much less.

Now...lets say you are interested in owning Pensador...and their nice little bank account, it is conceivable that with just $30m for example, you could buy up the entire free float from CVI and push for a MAK/FMG type run...say with a target of $20?

Sounds far fetched...but I think most would agree $30...even $50m would do it.

In the process you would end up owning say 60% of CVI, which by then will have a fully diluted register of about 50m shares.

Assuming the buy-up works and your outlay of say $50m to buy 60% of CVI (318m shares), has pushed the price to $20...you can now issue more or less, 1:1 CVI shares to Pensador (68.5m shares)...and own it outright.

CVI will then have about 600m shares on issue, the buyer of $50m worth of CVI stock will own a 53% share thereof...and the value of the entity will be over $1.4 billion.

Our buyer, who pushed the stock up for the grand sum of $50m, now oens 53%of a $1.4 billion dollar company...$742m worth.

Whilst this might sound far fetched, the maths works...and I suggest may form the basis of future selling of this deal to instos, funds, sophs...in fact anyone who will listen actually.

As I said...the higher CVI's rice rises now...the more she is actually worth.

Compare to FMG...at 22c, and faced with something like $15 billion in infrastructure costs even before they turned their first profit, people would have laughed at the likely dilution...in fact I recall they did!

Bu instead they bought it up...and up...and up...to what appeared like crazy inflated prices...based on thin air...but it was that very air that gave the company the oxygen it needed to succeed.

I can see a similar play unfolding with CVI.

Cheers!