In the proposal it talks about the $3 million debenture being replaced with 12.6 million new shares of Merit. That puts a valuation of approx. $0.238 per share on those shares.

The other part of the transaction is where Avocet sells its 58% stake for $1,590,000. Based on the recent share count after the 50:1 consolidation (new OS of 4,344,729 shares), Avocet's 58% stake would be approximately 2,520,000 shares. A price of $1,590,000 for those 2,520,000 shares works out to approx. $.63 per share.

I am not sure if I have all of the math right here in these calculations - feedback (and correction if needed) is very welcome.

JMHO.

NorthLion