Legend has set up yet another company that is fully responsible for this project. I assume they are doing this because they have Legend listed as the holding company for the 10 other small companies they are trying to get off the ground.

LGDI will still hold the value for the share price associated with this transaction until the time of the IPO. I assume that LGDI shareholders will get to fill out the application to transfer LGDI shares to the new company shares upon the IPO (could be wrong). After the IPO, LGDI will still hold 60-70% of the value of the new company (as it's parent or holding co).

So - very good news for those that thought this may go to zero. Acorn is a legit outfit in AU. This gets them thru 2012 and allows for investment in AU from common stockholders, which is a very good thing.

Now if Slager would stop holding the price down, this thing may actually go somewhere.