Morning guys (& Harlee)I'm a UK based KAH share holder, and a...

Morning guys (& Harlee)

I'm a UK based KAH share holder, and a quick look at the figures suggests that you guys are getting the better deal.
Please correct me if I've messed up the calcs, haven't had time to check them through.


KAH 166,559,130 shares in issue @ 24/06/2008
EXT 212,720,414 shares in issue @ 11/08/2008
212,720,414 * 1.6 = 340,352,662 additional KAH shares to be issued to EXT holders.
340,352,662 + 166,559,130 = 506,911,792 Shares in issue after merger.
166,559,130 / 506,911,792 * 100 = 32.86% percentage of newly enlarged company owned by KAH share holders
340,352,662 / 506,911,792 * 100 = 67.14% percentage of newly enlarged company owned by EXT share holders


Dec 2006, KAH swapped it's 49% of the uranium projects for 36% of EXT's share capital. KAH maintained it's percentage throughout fund raising events and eventually rased it's stake to 39.11%.


So KAH holders owned the whole of KAH + 39.11% of EXT and will only own 32.8% of the combined companies.
EXT holders have swapped their 60.89% of the Uranium project for 67.14% of both companies.


I summed up my initial thoughts regarding the consequences of the merger in a post on a UK BB. I've also copied the following post from Grimbo


fordtin - 5 Sep'08 - 10:38 - 699 of 700


lord elpus -
has the situation really changed much for EXT holders? KAH has often traded at a discount to the value of it's cash reserve+EXT shares. Even when it has exceeded that sum, KAH's share price has never really reflected a great deal of value for it's own projects. If you turn it around and consider it to be a reverse take-over, EXT now have a greater cash pile and an increased pool of drilling equipment + staff to draw from. The way it's shaping up, they may consider putting all other projects on hold and shifting all attention to Rossing South.
The dual listing is good for UK investors as it allows us to hold it within an ISA (our annual tax free portfolio). This is potentially good for you guys too, as it increases the appeal for the stock. It may also give greater access to future fund raising.

Grimbo - 5 Sep'08 - 10:48 - 700 of 700

I remember the Extract shareholders felt they got a pretty poor deal when Kalahari got a big chunk of equity - until it became clear how big the Uranium resource is.
I imagine (apart from combining cash and manpower and expertise) that this also about raising future money and investment (mines cost a lot) and increasing size and clarity of ownership to attract a different size of investor In both AIM and ASA. (The ISA eligibility is a nice bonus) I would also imagine it simplifies things if Rio or some other big miner wants to buy at some point.