Existing shareholders appear to be getting screwed over but for...

Existing shareholders appear to be getting screwed over but for an outsider coming in, it seems like money for jam

So here is my analysis from what I can read amongst the announcements (not financial advice, just some back of the envelope numbers)

Coda spin off will have assets (approx $3m in books but inflate for listing upside of $5m) and $10m cash, lets assume they raise another $2m for spread or give out shares to advisers for that total.

Therefore we have $5+10+2 = $17m

GBG has circa 1,500,000,000 shares on isuse

at the ASX minimum IPO price for a new float of $0.20, that equates to ($17m/$0.20) 85m shares in Coda

so 85m shares in coda / 1.5bn in GBG = 0.056 new shares per every 1 GBG

Invest $20k in GBG now at $0.026 and it would give you cica 77,000 GBG shares

At the above ratio it would seem to result in 43,589 new shares in Coda. At the minimum ASX pricing of $0.20 that seems to be value of circa $8,700

And they buy back your shares at 2.6c.

Seems like money for jam for me for outside new shareholders.