If I was the recent underwriter of $500k at post consolidation price of 3.5c I would be dirty.
First glance is that there is no timetable and no project.
Valuation of company shares after offer equals 1.85c cash so that looks like a good deal for existing shareholders.
The fact that the offer is renounceable means that shareholders may also get some cash for their rights if they sell.
This is a much better deal for long term shareholders than the original rights issue of 3.5c.
Its value will depend on a project.
I`ll give a tick to the new management if they have a project and obtain it at value. Will be paying up if they can follow through as the price of the rights is a good start. Your 1.8c right will have a cash in the bank value of 1.85c so the project is important.
New Feature Announcement!
We’re excited to introduce the DealRoom portal, now live on site, providing users with exciting access to private equity opportunities for both pre-IPO and publicly listed companies.
See full details by selecting the new menu item named 'DealRoom' on our main menu bar or click below.
Stay ahead of the market, with HotCopper.