'At the Annual General Meeting of shareholders held on 17 November 2011, shareholders approved the issue of new capital of up to 5 million shares to fund the acquisition of strategic stakes in Australian companies.
Mariner has explored a number of investment opportunities over the last 3 months, and is now pleased to announce to the market a number of acquisitions: 1,078,167 shares in Capilano Honey Limited (ACN 009 686 435), representing 12.65% of the issued equity of that company; 6,630,958 shares in Farm Pride Foods Limited (ACN 080 590 030), representing 12.02% of the issued equity of that company; 1,700,000 shares in Tasmanian Pure Foods Limited (ACN 124 272 108), representing 19.65% of the issued equity of that company; 1,441,039 shares in Peanut Company of Australia Limited (ACN 057 251 091), representing 19.83% of the issued equity of that company. These four investment stakes will be acquired from a listed Australian investment company for a total consideration of $3,160,000.'
now if I read that right it means that MCX will be paying for over $3 million worth of acquisitions by issuing up to a maximum 5 million new shares in MCX.
do the maths - if the seller gets 5 million shares for $3.16 million the implied value of each MCX share is more than 60c, or about triple the current price of MCX.
very interesting.
obvious re-rate ahead.
MCX Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
