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Gold/Mining/Energy : Capital Alliance Group - CPT (CDNX) -- Ignore unavailable to you. Want to Upgrade?

To: keith massey who wrote (191)	4/1/2000 1:49:00 PM
From: AriKirA	Read Replies (1) \| Respond to of 960

The company had to do an initial valuation of SEG to set the seed capital price That is exactly my point Keith... The initial valuation was based on criterias used for capital seed financings. Therefore, if upon said valuation, SEG's post closing value is 35 million US, that means that CPT's 78% interest is valued at 25 million US... since 'post closing' they are taking into account the 10 million already paid for in consideration of the 22% interest. Since 78% is valued at 25 million US, their remaining 52% interest, once the 40 million US financing is closed, will be worth at least 16,6 million US based on the initial valuation. Now, we both know that the valuation was done based on the lowest possible figures in order to allow some 'positioning'. Therefore, as you mentioned in your post, if approx 25% is valued at 40 million US, and by the latter we are using an estimate of what the market in general is willing to pay for an equity interest in SEG, CPT's 52% interest would be valued at 80 million US, for a total of 130 million US for SEG. The initial 65 million US valuation that I posted was a VERY conservative figure and the lowest possible valuation that I can see given to SEG... A more reasonable and realistic figure would be 130 million US. That is not taking into account as you so well put it: -an over-subscription -a price hike in the IPO price -a jump in the price when it beings trading... as the IPO gets a little closer and the site goes live I would expect the valuation put on SEG to increase dramatically. Ditto... my friend Kind regards AK