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Mr. Bigges,
FACT
1. Mountain Energy was a private company.
2. ICVI was a public company.
FACT
By "merging" with ICVI, Mountain Energy achieved two things:
1. Getting itself listed.
2. Returing value to ICVI shareholders.
FACT
The equity holders of Mountain Energy received 55,000,000 shares at 0.53 =
$29,150,000.
REASONABLE CONCLUSION...
The equity holders realized that once Mountain Enery stock achieves its
book value ($2.85 / share), those 55,000,000 shares will be worth
$156,750,000... and that once it achives a reasonable BV multiple (1.5),
those shares will be worth $235,125,000. If the company believes in its
market value, it has nothing to fear.
Michael Bendner |
