Math help

Welcome To The Ontex Resources HUB On AGORACOM

Dear Agoracom Family,

I want to thank all of you for your patience with us over the past 48 hours and apologize for what was admittedly a botched launch of our new site.

As you can see, we have reverted back to the previous version of the site while we address multiple forum functionality flaws that inexplicably made their way into the launch.

To this end:

1.We have identified 8 fundamental but easily fixable flaws that will be corrected in the coming week, so that you can continue to use the forums exactly as you've been accustomed to.

2.Additionally we will also be implementing a couple of design improvements to "tighten up" the look and feel of the forums.

Have a great Sunday, especially those of you like me that are celebrating Orthodox Easter ... As well as those of you who are also like me and mourning another Maple Leafs Game 7 exit ... Ugggh!

Sincerely,

George et al

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lazyinvestor

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Math help

posted on Oct 13, 2009 04:08PM

Can someone post the math on this? Here is my math, but it doesn't add up to the numbers in the press release. Can someone help me out?

Math:

Shares Outstanding Closing Price Market Cap
====== ======= ========= =========
RMK 153,669,000 $0.24 $36,880,560
ONT 128,120,000 $0.40 $51,248,000

ONT offering 0.80 ONT shares for each RMK share.

This means that Ontex is offering 153,669,000 * 0.8 = 122,935,200 Ontex shares.

122,935,200 * 0.40 = $49,174,080 for RMK, a premium of $12,293,520 ($49,174,080 - 36,880,560).

This would represent a 33.3% premium ($12,293,520 / $36,880,560)

This means that there are now 251,055,200 outstanding shares of Ontex (128,120,000 + 122,935,200).

Now lets factor in the 1-for-3 reverse split, which will happen before this deal closes.

Since this anouncement, Ontex's shares have tanked to $0.35.

Assuming a share price of $0.35, this means Ontex's share price would be $1.05 and there would be 42,706,666 (128,120,000 / 3) Ontex shares outstanding.

Ont would be offering 0.266 (1 / 3.75) ONT shares for each RMK share.

This means that Ontex is offering 153,669,000 * 0.266 = 40,875,954 Ontex shares.

This would put the total outstanding shares at 40,875,954 + 42,706,666 = 83,582,620

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