I think today’s sp was the bottom and EHL shareholders’ pain is...

I think today’s sp was the bottom and EHL shareholders’ pain is over. Due to the serious of EHL INSTALMENT WARRANTS, EHL sp was slashed (A warrant is similar to an option, the main difference is that warrants are issued by a company attempting to raise capital).

However, from now we might see sp rising (hope it’s not only my wish)

EHLIMO Warrants MACQUARIE 40 EHL INSTALMENT WARRANT 29-JAN-09

Shares Issued 10,000,000 Market Capitalisation 6,450,000
Security Type WARRANTS (CALLS) (46) Security Group: Warrants
Warrant/Share 1.000000 Warrant Issuer MQB


EHLION Warrants CTW 80 EHL INSTALMENT WARRANT 18-DEC-08

Shares Issued 10,000,000 Market Capitalisation 0
Security Type WARRANTS (CALLS) (46) Security Group: Warrants
Warrant/Share 1.000000 Warrant Issuer CTW

EHLIMA Warrants MACQUARIE 60 EHL INSTALMENT WARRANT 18-DEC-08
Shares Issued 10,000,000 Market Capitalisation 0
Security Type WARRANTS (CALLS) (46) Security Group: Warrants
Warrant/Share 1.000000 Warrant Issuer MQB

An instalment warrant has typically been understood to be a type of derivative financial instrument whereby:
• the warrant holder acquires beneficial ownership of a share via the payment of two or more instalments;
• pending payment of the final instalment the share is held on trust for the warrant holder, who benefits from any dividends paid on the share and growth in its capital value;
• the deferred instalments are effectively a loan by the warrant issuer (typically an investment bank) to the holder;
• if the warrant holder defaults on the loan, the issuer’s recourse is limited to the share; and
• upon payment of the final instalment the warrant holder is entitled to receive a transfer of the share.


Upon maturity, investors will generally have a number of choices available to them. These include
1. Making the final instalment payment (i.e. repay the loan) and taking delivery of the underlying securities.
2. Doing nothing. The instalment warrant will lapse and the issuer will sell down the underlying securities and return any surplus funds after the disposal to the investor.
3. Selling the instalment warrant on Australian Stock Exchange prior to maturity.




NJ