trading halt, page-87

I can see your point Doctornoh. However, It seems to me that the real concern that SHs have with the 1:37 number is that PS in the last conference call said that the allocation would be on a pro rata basis and he gave an example that if you held 1% of ACL, you would hold 1% of the the new company.

If you do the calculations, 1:37 is equivalent to 7,584,245 in Audeo. and that is before the raising in the IPO. Assume that a further 7,500,000 shares are issued at $5 to raise $37,500,000 and that gives a total of 15,084,245 shares on issue in Audeo.

To illustrate, take an example of a holder of 100,000 ACL shares. That holder has .035636% of ACL and gets 2702 shares in Audeo which is .035636% of 7,584,245.

If we go on PS's example in the conference call [which has since been taken down] the allocation should be .035636% of 15,084,245 which equals 5375.

Under the 1:37 formula, we are effectively getting half of the pro rata rate that PS gave in his example.

In effect the holders will participate in a dilution and IMO, that is what is bugging shareholders.

Of course on the other hand, if $37,500,000 is raised at $5 per share, our current ACL holdings are valued at .134c per share provided the SP stays at $5. With so few shares on issue there is obviously massive upside if the phase 111 trials are successful


Any thoughts?

Mulac1