As at prices on 13 October 2011, the loss in shareholder wealth...

As at prices on 13 October 2011, the loss in shareholder wealth (post-merger) on a 20,000 ADU share holding is $1,977.

Share Price of Endeavour Canada EDV.TO = CAD$2.17
Canada/Australian Exchange Rate = 0.964
EDV.TO cost per share in AUD = AUD$2.092

Calculations based on ownership of 20,000 Adamus shares.
ADU share price = 69.5 cents.

Post Merger Endeavour shares at .285 of 20,000 = 5,700

Current pre-merger shareholder wealth via ownership of 20,000 ADU shares = AUD$13,900.

Post-merger shareholder wealth via ownership of 5,700 ADU/EDV shares = AUD$11,923 (loss of $1,977).

Therefore, if this shareholder elects to retain their ADU holding through the merger, the value of their holding in Adamus/Endeavour post merger would be a LOSS of $1,977

Please be aware this loss in value is calculated on prices at 13 October 2011, and that these may change by the time of the merger.

Another way of looking at this is that based on today's prices this "example" person has the equivalent of 5,700 post merger ADU/EDV shares, but if they were to sell their current ADU shareholding and use that money to buy ADU/EDV shares post merger (assuming the merger occurred at the current prices), then they would own 6,645 ADU/EDV shares, a gain of 945 shares (and a retention of their current wealth).

I have a spreadsheet I plug the daily prices and exchange rates into, and this tells me how much wealth I would lose (or gain), due to the merger if it occurred at prices on that day.

If there is a large or significant disparity to the ADU "loss" side on the day before these companies go into a trading halt to implement the merger, then I would need to sell my ADU shares and use the money to buy back the post-merger ADU/EDV shares in order to retain my wealth.

Gw