I suppose it's a question of timing really Cerhob. The values...

I suppose it's a question of timing really Cerhob. The values you posit aren't really applicable at this point for the simple reason that the acquisition agreement allows that UCL has the right to pull out of the contract and cancel the shares if it is not satisfied of a number of conditions pertaining to viability.

Therefore it must be assumed that technically the 9 million shares don't exist until the contract is settled. If it is settled it would presumably mean that the board is satisfied with the viability of Sandpiper. If Sandpiper is viable it represents significant value for shareholders and would, hopefully, mean the market cap will be significantly higher than the current $7.2 million.

Let's allow that the project is successful and UCL ends up with a profitable 3 mtpa phosphate operation turning over potentially in the hundreds of millions of dollars a year. What would this potential be worth at the time of settlement of the transaction? Would $30 million market cap be reasonable? That would be around 3 cents on likely capital structure at the time or $270k for the vendor - a pretty cheap installment I would say. Of course the vendor gets more than that as there will be US $500k cash and royalty payments (I think there might have been some additional shares somewhere but haven't got agreement in front of me).

On that basis as a long term holder does it matter if the current market value of the vendor's shares has dropped?

However if I was the vendor or a short term traded and I intended to trade the shares by now I would be a bit disappointed.