Firstly the price remains higher than rights issue offered at a discount.
Secondly, SHD won't be as diluted if everyone took up their share of the rights.
Thirdly this allows Jerry Ren to further consolidate his stake in the company.
Assuming no one takes up their rights issue, the issue is not underwritten, so it works towards to Jerry's advantage. I calculated at max, if no one takes up their share of the rights, Jerry's stake in SHD will jump from 77.2% to 78.2%.
SHD Price at posting:
8.3¢ Sentiment: Buy Disclosure: Held
