Pretty good summary of what I think, without the 1000 word...

Pretty good summary of what I think, without the 1000 word essay...

"I believe I have an appreciation of the benefits offered by Red 5 as well as the sacrifices SLR makes to access them.In the end, I fell on the AGAINST side of the question as I believe we should be able to find a better opportunity.I understand they don't turn up on demand, but this relatively complex reverse takeover proposal, along with all of the Red 5 wrinkles does not aequately value the SLR cost/value brought to the table.I totally expect the proposal to get over the line, but feel better that I have expressed my personaql little for of protest vote. These people need to know they are not the dealers of all the cards without some sort of accountability."

I would like to add to that last line though, the BoD clearly have a vested interest in pushing this merger through, basically in one of my previous posts, I mentioned the % of insider holdings, I'll post again below, but they show that LT and his crew hold collectively .542% of the shares... This is from Silver Lake Resources Limited Insider Trading & Ownership Structure - Simply Wall St, not sure if it is accurate but I assume it is based on information I'll provide in bit.


I dare say that they don't care about the shares being undersold or undervalued at all, basically they have so little skin in the game, they couldn't care less if they threw the shareholders under the bus for a sizeable gain for themselves.

Here's what LT gets in the event of a merger, 2,632,659 SLR performance rights to be vested upon completion of merger, another 1,063,420 SLR shares issued upon vesting the 2,632,659 SLR performance rights, the 1,063,420 SLR shares are entered into escrow and cannot be sold until 30 June 2025.

LT gets 3,696,079 SLR shares in the event that the merger is successful... How many shares does he hold right now? He holds 764,186 SLR shares as of the scheme booklets release.


This basically means that if he manages to push the merger through, he will gain 82% more new shares or a total of 3696079 shares.
Math is as follows:
764186 (current shares) + 3696079 (issued shares on merger completion) = 4460265 (Total holding)

764186 / 4460265 = His current holding of 0.1713319724276472 or 17.13%

3696079 / 4460265 = His expected gains of 0.8286680275723528 or 82.86%

Not to mention he also gets a pay rise... basically his interests are so vested in the completion of the merger, and he will gain basically nothing if the share price were to run up without the merger.

With his current shareholding of 764186 x $1.54 = $1,176,846

If SLR were to go to $2.40 then he would have 764186 x $2.40 = $1,834,046

This means that on the SP hitting $2.40 he makes $1,834,046 - $1,176,846 = $657,200

What I want to ask is this... Is it LT's own self best interest to push for the merger or not?

If he drops the merger and pursues other avenues of growth, even if SLR were to run to $2.40 he would make massively less than if he managed to push this merger over the line.

If he manages to push this merger through, what kind of gains is he looking at?

1.064 million a year in remuneration.

3696079 Shares issue price of $0

What is 3696079 SLR shares worth at $1.54? 3696079 x $1.54 = $5,691,961.66

So not only does he get a pay rise, but LT also stands to make a minimum of $5,691,961.66

Now let's say that the SP goes to the equivalent of $2.40 after LT has gotten his hands on those 3696079 shares, he is now looking at what?

3696079 x $2.40 = $8,870,589.6

In who's best interest is this merger? The shareholders? or LT? He's looking a difference of potential gains of $8,870,589.6 + 1.064million in remuneration a year.

If the merger doesn't go through LT is stuck with his current remuneration (TBH I don't know what it is at currently, but I assume he got a pay rise) instead of his new remuneration of 1.064mil and instead of his paltry amount of 764186 shares, he'll be sitting on a total of 4460265 shares...

Basically this "I totally expect the proposal to get over the line, but feel better that I have expressed my personaql little for of protest vote. These people need to know they are not the dealers of all the cards without some sort of accountability." Like straight up f*** those guys, I'm definitely not voting yes f*** that noise, lol.