East Coast is an NL company so a partly paid holder does not need to pay up the call. What it means though is that the partly paid shares go to auction at the ASX. Who would stump up the money I don't know. Seems to me that there will be a number of people with a tax loss coming. Even if you bid for the partly paid shares at auction you would have to pay the 6cent call plus what ever you paid for them. I am not totally sure what happens if no one bids for the partly paid shares, but I assume they get cancelled. Lets just hope the sp goes up so I can use the tax loss against my capital gain on this stock.
ECM Price at posting:
19.5¢ Sentiment: LT Buy Disclosure: Held
