Taking this from the financials: In addition warrants to subscribe for 35,090,378 ordinary shares at a price of 5p each are outstanding at 31 March 2014. These warrants are exercisable between 6 August 2017 and 6 September 2018 subject to shareholder approval of a share capital re-organisation. This would mean, that within 3 years the present O/S would be diluted by 184 % because somebody is sitting on Warrants at a price of 0.05 which is equivalent to £ 1’754’518.—However at present the intrinsic value of those Warrants is roughly 35 Mio. And then there is another one, smaller but as well heavy: As at 31 March 2014 options were outstanding in respect of a total of 3,935,671 new ordinary 10p shares exercisable at a price of 11p. These options are exercisable until 30 August 2018. This would mean, that for the execution of those options roughly 433.000 £ will be paid versus an intrinsic value of today of £ 4.7 Mio. So, when the company during the restructuring cycle saw the value, why then such Warrants? Taking the 35 Mio Warrants and 3.9 Mio Warrants we are talking about a coming dilution within 3 years of 39 Mio shares or 205 % dilution. When doing the mathematics it is always wise to read the balance sheet. Now you can come and say, yes but this will only happen in 2017/2018 then I have to tell you, it doesn’t matter because those Warrants at £ 0.05 and £ 0.11 are in the books. So it matters when you talk about valuation. 19 Mio shs. times 1.30 = 24.7 Mio Capitalisation 57.9 Mio shs times 1.30 = 75 Mio Capitalisation Rather a big difference, isnt’it?
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