re: interesting rights issue...ex tomorrow MOG trade 'ex' rights...

re: interesting rights issue...ex tomorrow MOG trade 'ex' rights tomorrow...

Will be interesting to see what they trade at.
Lets see...

- Rights conversion price = 12c
- Ratio = 2:5
- Shares are currently trading at 22.5...(may drop tomorrow)
- Rights come with free 20c option attached.
- This 20c option has a free 30c option attched.

Assuming shares trade at 18c...???

Rights value...

Basic difference between share price and conversion price = 6c

Free 20c option = 8c (assumed value for standard option, depends on share performance)

Free attached 30c option = 7c (current price)

Summary...6+8+7 = 21c.

Obviously the share price will have the greatest effect on things, but as you can see, the rights should trade pretty well.

I for one will be picking up anything being let go too cheaply.

LOL...forgot to add a premium on the rights due to the fact MOG are literally only days away from drilling Gilbert-1 (10% free carried), which will be immediately followed by Maclean-1 (35%).

Cheers!