Rights trading is over. The offer to take up the subscription is also over as of today. See shareholder letter 23rd June for dates or prospectus.
If you've done nothing those rights are now part of the shortfall, see the prospectus for details and also relevant section pasted below.
So if you've done nothing, the general idea is that someone else will buy the shares (and get the free options), as such allowing the company to obtain the funds it needs to progress.
Essentially you had the right of first refusal.
Ultimately what this means is that the percentage not taken up by shareholders can be sold in one large parcel, whereas a buyer of a large quantity could not do it on market because to do so would drive up the cost (remember there are not many shares on issue) For example 7,451,106 shares are being issued, if there is a 65% takeup, theres 35% left. That would be around 2.6M shares. Trading on market is typically no where near that volume. Normally between 100K-500K shares.
One way or another the company will get all the funds it requires, its just whether or not you got your slice of the action or not.
It will be the same for IFE, but TRF will take up its half. IFE following the same process but has an extra week or so for all the corporate actions, such that TRF can clear its funds and then participate with IFE.
Prospectus section 3.5:
Shortfall If you do not wish to take up any part of your Entitlement you are not required to take any action. That part of your Entitlement not taken up will form part of the Shortfall. Shareholders who wish to apply for Shares above their Entitlement can complete the Shortfall Application Form attached to the back of this Prospectus and return it, together with a cheque for the value of those Shortfall Shares (at $0.50 per Share) to the Company. The offer of the Shortfall is a separate offer pursuant to this Prospectus. The issue price of any Shares offered pursuant to the Shortfall Offer shall be $0.50 being the price at which the Entitlement has been offered to Shareholders pursuant to this Prospectus. If any Shortfall remains after Shareholders have taken up their Entitlements, the Directors reserve the right pursuant to Listing Rule 7.2 (exception 3) to allot and issue any Shortfall with parties selected by them. Notably as above, Shareholders (besides directors) may apply for Shortfall by filling out the attached form, and shall be given priority.
TRF Price at posting:
47.0¢ Sentiment: LT Buy Disclosure: Held
