The term "dilute" you guys have used that was totally confused...

The term "dilute" you guys have used that was totally confused and inappropriate.

SRS is "acquiring" SPS units to "simplify Spicer's capital structure". SPS unitholders will share the same benefits as SRS shareholders once both securities become fully controlled and leveraged corporate.

Normally the newly issued shares must be below the market price of SRS in which it standing at 25 cents. The pure reason is to attract buyers otherwise they will participate in open share market. Sp will for sure fall in line with discount amount. It's NOT in this case.

Let me calculate to prove the newly issued shares are offered at 25cents with ZERO discount. There's no particular reason to expect the sp to change once SPS unitholders decide to swap the new stock in full then SRS shareholders equities WON'T be diluted.

1,431,368,910 shares to be issued
times 25 cents
= $35,784,222

1,431,368,910 shares to be issued
divides by 545 shares of SRS for every unit of SPS
= 2,626,365 units

SPS units was offered at 51.4% premium of closing price of $9 on 10/10/2016
$9 + 51.4% = $13.626

2,626,365 SPS units
times $13.626
= $35,786,850

The newly issued shares are worth at $35,784,222
The SPS units are worth at $35,786,850

They are oranges for oranges that is why SRS shareholders equities are not diluted at all and the sp is not going to fall based on my calculations.

Once transaction is approved. It will trigger a deep "valuation" in the stock as liquidities are improved. It also attracts interests from traders, stockbrokers, fund managers, institutional and retail investors

Outstanding shares 665,180,000
Free Float shares 584,300,000

The higher the Free Float shares the lesser volatility in the sp.
Two of current MD will resign once a new director is found upon shareholders approval.
The locked-in shares or deferred shares in which they are owned by the company and managements will be released to assist in those issuances therefore Free Float shares will be the same as Outstanding shares.

True value will be adjusted by market forces and I think it's going to ignite by the upcoming half year report on 15/2/17 as the company stated it's "best opportunity to accommodate both set of securities.

Liabilities will be increased to account fot the increase in owner's equities but assets will also increase by the same amount. If SPS is worth nothing in administration but their assets are worthy as paper gold.

It's time to re-valuate as the future is looking brighter as the company is starting to make profits and to pay divi and to rise capitals to expand its business through acquisitions.

Done Deal