Graphene and Solar Technologies Ltd (GSTX)

[adijas]

Almost right. VNGE shareholders own 11,023,746 in total, not 12.025.608. 'Arrangements were made to increase the previous Vanguard Energy shareholders issued and outstanding shares from 1,002,134 to 11,023,474 shares for each VNGE shareholder proportionately.'

The new shares are valuated at 2.50. We´ll get 11 shares for every share we own now, so for us that´s 2.5 x 11 = 27,50. So basically you'll make a profit if you buy below 27,50 (which is a 10-bagger form current pps at 2,75!!). As you say, absolutely crazy! And better, you may assume that management thinks 2.50 per share is a good price to pay, so pps will go higher than 2.50. So if it goes to 5 and you hold 1000 shares now, your value will rise to $ 55000!

I don't think management is holding a lot of shares. The last 10k (january 2015) showes management is holding 14835 shares (p. 10)
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=10390432