whats it worth to you, page-9

From the 22/07/11 company announcement.

The amount of the Transfer Scheme Scrip will be equal to the greater of:

- 33% of the issued capital of MEGA Graphite; or
- a higher percentage of the issued capital in MEGA
Graphite if required to reflect the value of Uley, which value must be a minimum of CDN$70m

The issued capital could be private placements. There's nothing in the SER announcements which suggests that all of the issued capital must come from an IPO. If you were a wealthy org or individual who wanted to get a great deal on something would you want the general public to get a big piece of the pie?? Is there a rule in Canada/USA that says a public company must publicly trade all it's shares once listed? We really don't know the details of the agreement. We only have details of the demerger scheme.

The following is reasonably clear IMO, whoever invests in Mega will be getting promises of part ownership of Uley (and it's potential value) and we are being promised some of Mega investor's(private or public investors??) money. How that will work out physically is the mystery.

Either way IMO usually the ones early in the game benefit most. Look at SER holders who bought before the rise at end 2010 and sold early 2011 as an example.