looks too good., page-10

jowahsen said: "But am I wrong in thinking we will languish between the mid 50c and 45c seeing as the offer was 45c?"

Yes, you are wrong.

On the 3rd of August SLR closed at $2.84.

The offer for Integra was 1 SLR share for every 6.28 shares of Integra held. $2.84 / 6.28 = 45.2c per share. That was the value of Integra shares on the 3rd of August, based on the closing price of SLR shares on that day. When the market opened following the merger announcement, IGR shares immediately jumped up to 45c, in line with the formula above.

It is the ratio that is important, not the figure of 45.2c per share which is now irrelevant.

SLR and IGR are effectively a single entity now, and are trading as such on the market. Today SLR closed at $3.46. Using the ratio above, IGR should have closed at 55c, however, it closed at 54c, so is lagging a cent or so behind the optimum and this has been the pattern since the merger announcement.

You will find that IGR will track the SLR share price at this ratio right up until the merger is confirmed, at which time IGR shares will be converted into SLR shares using the formula above. If IGR shares lag the SLR price by too much, buyers will come in and buy IGR shares as this will provide a discounted entry into SLR.

SLR and IGR share prices will be affected by news released to the market, the price of gold, world events etc etc. Just as they would be before the merger announcment. Release good news and up we go. Release bad news and down we go. Cancel the merger and it's not something I want to think about as an IGR holder!!