Replies to post #1467 on American Sierra Gold Corp (AMNP)

[a67429]

CGFIA also has over 14 times the number of outstanding shares despite having less than 3 times the market cap.

So we'd get roughly a 5:1 exchange, even though CGFIA's stock is worth only 5% of AMNP's? Or even worse a 3:1 exchange if market cap is the only thing considered?

That doesn't make any sense on paper to me, and would probably lead to lots of legal action from share holders who's investment was sold for 0.20 on the dollar. Why would the CEO have bought so many shares if the numbers meant that he would certainly loose so much money on the deal?