Don't get me wrong, I am in favour of the merger.The...

Don't get me wrong, I am in favour of the merger.

The calculations I provide here are simply to determine whether, in order to preserve one's wealth, it might be prudent to sell ADU shares just prior to the trading halt, and then re-buy the equivalent value of merged ADU/EDV shares, after the trading halt.

These calculations tell you how much wealth you will Lose (or Gain), based on Todays Share Prices, and Exchange Rates (TSP&ER), if you were to HOLD your Adamus shares through the trading halt (and obviously, if the trading halt and merger took place today).

Calculations as at Frid 14 Oct 2011.

Endeavour CAD$2.21
Adamus AUD$0.68
CAD/ADU exchange rate 0.957
ADU shares per EDV 0.285

Loss of Adamus Shareholder Wealth = 11.4%

As an example, someone holding 20,000 ADU shares would see their wealth Decline by approximately $1,544.

If the ADU shareholder (eg. holding 20,000 ADU shares) was to sell their ADU shares, at these prices, just prior to the trading halt, and re-invest that money in the merged entity, just after the trading halt, then they would (more than likely) increase their holding by approximately 730 shares, and thereby preserve their pre-merger wealth (at least, that is what my spreadsheet is telling me today).

These are interesting times.

It will be interesting to see, how these rates fluctuate from day to day up until the trading halt, but as of today, ADU shareholders "that HOLD" would lose 11.4% of their wealth.

Gw