Where is Wally, IMO you have over looked some very important...

Where is Wally,

IMO you have over looked some very important facts in your research.

1/ If Dropmysite is such a great company why do they want to list on the ASX
Easy answer, they need funds - so there will need to be a cr in the near future should this deal go through - how many shares will need to be issued to raise these funds - in their documentation they say they need to raise a further $3,000,000, they also state this would be done after a possible consolidation at a price of .10 So we will jst park that one for awhile

2/ Do you think that the current owners are going to hand over there business for nothing
Again an easy answer no they will not, they will want to retain at least a controlling interest in the new company - so how many shares will need to be issued to them.

The new shares on issue with the 21,000,000 options converted will be 262,190,351 plus the 120,101,425 shares to be issued under the current credit rising giving a total of 382,291,776, so to give the owners 51% of the shares would mean issuing them around 400,000,000 new shares (now if we value those shares at say .012 that would value their company at around $4,800,000) However we would then have at total of 782,291,776 shares on issue.

Now lets get back to the possible consolidation of shares lets say 1 for 9, that would mean there would be around 87,000,000 shares on issue post consolidation, to raise the $3,000,000 @ .10 they would need to issue another 30,000,000 shares taking post consolidation shares on issue to 117,000,000

This may take some working out so i hope i havent got my figures wrong or confused anyone

The end result would be mc around $11.7m