SYT 0.00% 0.1¢ syntonic limited

Ann: ASX Notice - Reinstatement to Official Quotation-SYT.AX, page-8

  1. 5,038 Posts.
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    I understand what you're saying regarding market cap.

    Only you're going by the number of shares that were in issue at that time and multiplying it by the share price & comparing it with now.

    However you've over looked one key fundamental point.

    Since the 8th of March 2016, investors have known the terms of the reverse take-over. So they've known how many shares etc were going to be in issue when the deal completed.

    Between then & 23rd May the stock market has adjusted its valuation of the company accordingly to find an overall market cap it was comfortable with, given the information in the public domain. We've now moved on 9 weeks and the stock market needs to decide on what it feels its current market cap should be due to events during that time & the company's future prospects.

    If they were for example buying some other asset today for X million, then yes the market would need to work out a market cap for the whole new entity - taking into account the cost of the purchase & what it brings to the table. It would take days or weeks to do so.

    However that's not occurring here. Mr Market had worked out its view of the company's valuation from March to May

    Hopefully that helps you, understand the difference in circumstances here.

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