time to invest in graphite as china cuts suppl, page-76

Mega obviously has some assets - it has paid $C800,000 to SER for Uley repair with $200,000 to come on signing & it has half dozen or so directors or managers who presumably get paid & it is paying for negotiations in India & need to flash some cash there & the say their big asset is their graphite khowhow & contacts.

But if they got listed now, the market wld. value them at not more than cash backing & Mega wld. not make a deal on that basis.

I wld. expect some sort of deal whereby Mega gets listed with Uley & perhaps Indian graphite with SER & India with preferred shares or convertable notes with final settlement in 2 yrs based on market cap.But SER & India wld need watertight guarantees to protect their interesrs.