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To: Patherzen who wrote (354)6/29/1998 6:12:00 PM
From: Mr. Jens Tingleff  Read Replies (1) | Respond to of 7609
 
News 13. said that agreement with FAMC was expected to be finished at 26. - I expected a confirmation and statement of value brought in.

In fact we cannot talk about dilution before we know if we are paying a dollar for a dime or a dime for a dollar or of course even money. At all if the stocks issued are a part of the merger.

With the same stockholders equity - the increase in outstanding shares actually also increase the value per share (as it's negative) - from -0.0197 to -0.0133 <G> - So what we need now is a 3.3 cent increase in value per share and the stock trades at internal value - 3.3 cent= 8 mil$. - Before issuing 80mil we needed 3.97 cents increase to trade at value (current quote 2 cent) but these 3.97 cent amounted to only 5.6 mil$ - So if the new shares is mostly connected to merging - then we should be satisfied if the merger add the difference to stockholders equity - (2.4 mil$) - If it adds less we had a poor deal - if it adds more ve have a good deal. IMO -

Kr
Jens