GBFE - GOLDEN BOOKS FAMILY ENTMT INC Message Board

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Microcap & Penny Stocks : GBFE - GOLDEN BOOKS FAMILY ENTMT INC

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To: RSkarsten who wrote (458)	8/27/1999 5:29:00 PM
From: Sethpop	of 476

You misinterpreted the arithmetic...my math is correct. I indicated that the NEW stock would be worth $10...however current GBFE shareholders do NOT get a share of new stock for every 318 current shares!! They get the RIGHT (a warrant) to BUY a share of the new stock at $46 (which is $36 MORE than the appraised value of the new stock)...so the warrant is virtually worthless. The Black-Scholes appraisal of the value of the warrant is between $.38-.58/warrant...so it is the appraised value of the warrant that you must divide by the 318 to work backwards to what the current value of the stock is. Thus THIRTY EIGHT TO FIFTY EIGHT CENTS divided by 318!! This works out to between one and two TENTHDS of a penny per current share.

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