PowerLinx Inc (PWNX)

[Francois+Goelo]

TA, Further considerations about the PP...

The calculations are Independent of any market or investors' perception and are those that happen between the close of the Market preceding the day the PP becomes effective and the market opening the next day...

It's similar to a 2 for 1 forward split and share price is a direct function of market value divided by the number of shares... Say a stock has a market value at the close of the market of $5 millon, based on 5 million shares outstanding and a close @ $1.00... A 2 for 1 forward split (5 million shares will then be 10 million) becomes effective the following day and the MM must calculate the new value of the shares for the opening:

Market value ($5 million) over # of shares (10 millon) = 50 cents

The only difference with the example used is that the market value of SEVU goes up by the $2 million provided by the PP, that are added to the market value at the close of the market, so that the loss to the non-insider investors is 40% instead of 50%...

JMHO, F. Goelo + + +