Asia Entertainment (NASDAQ:AERL)

CS China currently has 6.9 million common shares outstanding and 14.648 million warrants inclusive of shares and warrants held by management.

CS China will issue 10.35 million shares and 10.35 million warrants at closing. The warrants will have a strike price of $ 6.10 and will be exercisable during the five-year period from their date of issuance but only if AGRL annual U.S. GAAP net incomes exceed US$ 30 million for the fiscal year preceding the date of exercise

Shareholders may earn up to an additional 17.2 million shares of the Company’s common stock, subject to the achievement of the following net income targets:

Source: Business Wire (October 13, 2009)

^a The GeoTeam® calculated implied EPS figures using 21.5 million diluted shares for 2009 as the initial base amount and adding incentive shares in subsequent years assuming net income targets are met. We did this only as a frame of reference as the figures do not take into account the possibility of any future dilutive events. (After the closing of the share exchange, we have calculated that there will be approximately 31.6 million fully diluted ordinary shares outstanding.  We do not use the treasury method in our share calculations. However, doing so would lead to higher EPS numbers. We are contacting management to confirm our share assumptions).