Al1, I'll tell it to you as it is without all the fluff.
IFE needs dough to develop the project.
The directors have their dough tied up in TRF stock and, not being mega wealthy, can't possibly take up their full entitlement to IFE rights if TRF was to participate.
Rather than sending out the wrong message by skipping on their rights take up they've decided that the company will not participate.
To avoid dilution they've cleverly grabbed a swag of free TRF options at the expense of the company shareholders.
TRF shareholders can't participate in the rights issue and are at the whim of the directors and their personal financial circumstances.
Pretty simple really.
Stagman
TRF Price at posting:
43.5¢ Sentiment: None Disclosure: Held
