MEG - Was the decision of subscribing to the SRO wrong?

By Andrei of www.traderspizza.com

Let’s check.
Option 1 – Did not subscribe to the SRO but instead bought at the equivalent volume of shares at board below par ( let’s consider 0.97 per share).
Let’s consider a minimum of 5 shares for easy computation.
Original Cost = 5 shares x 0.97 = 4.75
At MEG’s price of 1.08 today;
5 shares x 1.08 = 5.40
( 5.40 – 4.75 ) = 0.65 or 13.6% increase

Option 2 – Subscribed to the SRO at 1.0 per share
Let’s consider a minimum 5 shares for easy computation.
Original Cost = 5 shares x 1.0 = 5.00
At MEG’s price of 1.08 today;
( 5 shares x 1.08 )+ 4 warrants ( 1.08 -1.0) = 5.72
( 5.72 – 5.00 ) = 0.72 or 14.40% increase
The Advantage :
50% payment only was needed to initially pay the SRO. The remaining 50% was use to either buying PAX or AGI or MEG which in turned made profits. So the equation should be;
( 5.72 – 5.00 ) = 0.72 or 14.40% increase + earnings from ( PAX or AGI )
The Disadvantage:
Can not sell the SRO and warrants. Forced investments