Why? Can someone explain?, page-7

@Haworth

Strengthened position?
I don't understand your comment. There's a deal and there are details of the deal.
The prices of the 2 stocks are now locked together with market fluctuations.

ADN is the alpha stock IMO, as it's bigger and should trade more volume.
MEP should trade at +15% to ADN trading price.

*I think many younger or inexperienced investors are getting the share price mixed up with the market caps or the details of the deal.
**It's NOT saying MEP is 15% better than ADN.

MEP was seriously undervalued for the past 18 months past on the PFS's NPV % on a pro-rata basis. Even the merger price it's still undervalued based on the NPV.
However, IMO most MEP SHs see the long game here.

As of todays close...

ADN is at 17 cents.
MEP closed at 18.5 cents.

If the deal happened/closed now MEP holders would get 17c + 15% or 19.55c worth of ADN shares.
So there's some value or arbitrage there but, I'm not going to sell any of my ADN because it's just not worth the $ amount and there's tax involved even if your in a SMSF.

MEP holders are also getting their % ownership in Breakaway (All the NON-GW and Nano tech assets MEP had a % of)
Some MEP holders think they are worth as much as 5c. Some think as low as 1c.
I don't know but, I think 2c is a safe bet. Currently the market is giving zero value to Breakaway.

So MEP is a tad undervalued currently but, that value is instantly realised the day after the merger vote is approved.
I don't care, as I know I automatically get that value in 2 months.

Plus, I think the ADN shares are going to be a lot higher by then, so MEP will be a lot higher (+15%) by default.
(read the merger announcement - should take about 30-45 mins. If you don't get it, read it again. If you still don't get it, you should contact a financial advisor who will explain it.)

I'm very, very happy holding both my MEP and ADN shares.