time to invest in graphite as china cuts suppl, page-16

At this point we have absolutely no idea how Mega plan to acquire our shares other than it has to represent a "value" of $70M in a listed entity.
What is proposed is that Uley be spun out by the de-merger of Tarcoola as the first step to facilitate the process.
Note here that we are being asked to move the bulk of our investment into a non trade-able private company with absolutely no details from Mega has to how they plan to complete the deal. Dangerous but at 8 cents there is little alternative for many us, myself included.
SER plan to create enough shares in Tarcoola to be able to offer 1 Tarcoola share for every SER share currently on issue PLUS enough shares to offer 1 Tarcoola share for every SER option that is exercised before the cut off (MM has 10.5M) PLUS another 20% to be retained by SER. That's a whole lot of dilution going on but does conform with the 80% distribution to SH's.
Ok, Mega have 3 months to come up with a listed structure with a value of $210M in order to acquire SER & our Tarcoola shares and satisfy the 30%/$70M value. A tall order when Focus & Northern both only have a mkt cap around $60/70M with a similar asset to Uley. IMO the only way they can do it is a partial listing where they issue just enough shares to get over the line, largely underwritten by an associated party, with a value sufficient to give a nominal value of $210 to the entire company. I.e, create 210M Mega shares at $1 but only offer 21M in the initial float. In other words we'll be holding paper with an inflated value or conversely a much diluted value of the asset we currently own.
That scares the hell out of me and with no visible assets it's the only way I think Mega can do it but I'll happily be proven wrong.
On the flip side it would appear that the major SH's and MM (who is exercising his 10.5M options into the deal) are supporting the deal. On balance, and presuming they know a good deal more than I do, that suggests that you simply follow the smart money, and hope it is smart.
I really can't believe we are being asked to tip the bulk of our investment into an unlisted company with no exit strategy, Mega acquisition, clearly spelt out in a legal prospectus. The joys of junior specs I guess, at least the graphite macros continue to look promising and there is some hope of a white knight emerging.