https://www.pinnacledigest.com/mining-stocks/powering-the-future-canadian-lithium-stocks/

https://www.pinnacledigest.com/mining-stocks/powering-the-future-canadian-lithium-stocks/

https://www.e3lithium.ca/newsroom/news-releases/e3-lithium-completes-initial-field-pilot-plant-tests-and--shares-results-against-kpis

If you think my math is in error, you should explain the supposed error. That's how an investor forum should function. But, this one doesn't function that way. It appears to be just a forum for cheerleading.

I'm not trying to discourage anyone from buying the stock. I'm simply saying that 2X is the best anyone is going to do by virtue of the merger. Sure, after the merger, the stock price will likely move higher, but the merger will not alone generate a 3x return. Anyone who's betting on that outcome doesn't understand reality.

When one puts $100K+ into a stock, one tends to be ultra-cautious. I will be content with 2X. Just trying to make sure I don't get burned by getting greedy.

Okay, since you fellows appear to have failed math in junior high school and not taken any math in high school, I will simplify it for you.

70% of $120 million is what? Raise your hand if you know the answer. I don't see any hands. The answer is $84 million.

Now, how many shares (presently) are going to share that $84 million? Raise your hand if you know the answer. Ah! Excellent! Everyone knows the answer. 3.6 billion.

What's the next step? Raise your hand if you know the answer. Right! We have to divide $84 million by 3.6 billion. Drop some zeroes and that becomes $84/3600.

Whip out your calculators, class. What's the answer? Yes, it's $0.023.

Class dismissed.

I have shares. Trying to decide whether to buy more. Right now, I see no reason to.

"The merger, which was initially announced on June 2, will result in existing ABM shareholders owning approximately 70% of the pro forma equity of the combined company, with the deal expected to close in the fourth quarter of 2023. The combined entity will be known as “American Battery Materials Holdings, and shares will be listed on the NASDAQ. This merger has the potential to unlock significant shareholder value when you consider the following:
As of June 30, BLTH had roughly 3.6 billion shares (total including warrants). Since the merger is valued at $120 million, that would mean that the new combined entity would be worth $0.033 per share, implying a potential upside of almost 3x from the current share price."


The paid promoter's math doesn't work. Forget about the rollback for a moment. If ABM shareholders are to have 70%, then the non-ABM shareholders are to have 30%. Which means, their shares will be the equivalent of 1.5 billion shares.

So, total shares will be 3.6 + 1.5 = 5.1 billion shares.

If the merged company is worth $120 million, then each of the 5.1 billion shares will be worth: $120 million / 5.1 billion = $0.0235/share.

Fanboys don't impress me.

With 3,360,000,000 shares outstanding, BLTH is completely diluted.

Paid promotional material. "CapitalGainsReport (CGR) is owned by RazorPitch Inc. and has been retained by American Battery Materials to assist in the production and distribution of content related to BLTH."

I'm not a basher. I'm a realist. If convinced you are right, I would load up. You say:

"This means that if you buy one million shares at the current price of .0149 per share, it will cost you $14,900 for your investment in BLTH. With this ratio BLTH merging into SGII trading at $10.00+ per share, your 1,000,000 shares would convert to the amount of shares below and at such a value after the merger (or roll up) into SGII...

1,000,000 shares x .0043 = 4,300 shares of SGII
4,300 shares of SGII x $10.00+ (Price of SGII:NASDAQ) = $43,000+ in New Investment Value

This means that BLTH has not currently reached its price of equilibrium for its new base which would be .043 per share which is where 1,000,000 shares would be worth $43,000 for the bottom value that would exist after becoming SGII:NASDAQ."

I take this to mean that, at a minimum, the share price will move from $0.0149 to $0.043, merely as a result of the merger. That's a swing of 3X (approximately). I'm not (currently) focused on the long term prospects for the merged company. I'm simply saying that a valuation swing of 3X as the result of a merger seems to me to be too good to be true.

Ballanger is a paid promoter.

I can't get my head around the notion that the valuation of one's holdings will jump 3X simply by a merger. Sounds too good to be true.

I don't think you've taken into account the planned share rollback, whereby the number of shares outstanding will be reduced. Probably 1 for 300.