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Gold/Mining/Energy : Capital Alliance Group - CPT (CDNX)

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To: AriKirA who wrote (174)4/1/2000 12:52:00 PM
From: keith massey  Read Replies (1) of 960
 
Ari

Upon the closing of this transaction, SEG's post closing value will be approximately $35-million (U.S.), as determined through consultations with the company's financial adviser

The company had to do an initial valuation of SEG to set the seed capital price. If the company initial set the valuation to high than insiders, family and institutions important to the deal could not get in at cheap price before the IPO.

So right now.....
If 22% is worth 10 million US than CPT's chunk would be worth 78%/22% = 3.545 * 10 million US = $35 million US.

Based on these number CPT has approximately $73 million in assets right now not including the CIBT assets and their other projects.

But on the day of the IPO,

-not assuming over-subscription
-or a price hike in the IPO price
-or a jump in the price when it beings trading....

If 25% is worth $40 million US than CPT's chunk would be worth 51%/25% = 2 * $40 million US = $80 million US and don't forget to added to this the $50 million US from the IPO. I think that calculation is fairly cut and dry and very fair to use for valuation as the IPO gets closer.

In other words, as the IPO gets a little closer and the site goes live I would expect the valuation put on SEG to increase dramatically.

Best Regards
KEITH


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