Roisoon, yeah, nothing could possibly go wrong ;-) My boots are not particularly large, but I'll be doing my best to fill them....
New rights issue
Eck71, We're almost there, and what i ask you could possibly go wrong between now and 1st pour ?haha. I'm bullish on this one, the timing could have been better though as it was only just the other week that I bought a wad :) I'm still currently half a million shares short off where i want to be though, so it's probably worth some serious consideration. Rgds Roisoon.
RE: New rights issue
Roisoon, yes it's dilution but a maximum of 10% (ignoring the options at this point). Almost always with these things the share price drifts down to round about the rights issue offer price prior to the offer closing date. That's not really the main issue though. At this point it's all about whether the company can secure the finance to go into production, on what terms and crucially for shareholders what the equity component of that deal will be. Until we get that news the SP will hover around roughly where it is now, and probably drift down a bit. I should have said, if you're feeling bullish and are in a position to, you can apply for excess shares (and therefore options) over and above your 1:10 entitlement. If you are in for the long haul and believe Scotgold will be producing gold by September 2017, those 1p options are a pretty tasty carrot. It's annoying that the begging bowl is coming out once again, but the options are a great way to offer what could be a very nice reward for those who have faith that Scotgold will deliver.
New rights issue
Hello buzzardstubble & Eck71, you've thrown some much needed light my way, re the new rights issue so thank you both for your expert input. Does this now mean that with a soon to be larger market capital, the share price is likely to shrink further ( albeit temporarily ) until production kicks off ? Thanks again..
RE: Rights Issue Prospectus
An issue of rights to a company's existing shareholders that entitles them to buy additional shares directly from the company in proportion to their existing holdings, within a fixed time period. In a rights offering, the subscription price at which each share may be purchased in generally at a discount to the current market price. Rights are often transferable, allowing the holder to sell them on the open market. For example, a company whose stock is trading at $20 may announce a rights offering whereby its shareholders will be granted one right for each share held by them, with four rights required to buy each new share at a subscription price of $19. The company will also specify that the rights expire on a certain date, which is usually anywhere from one to three months from the date of announcement of the rights offering. Companies typically issue rights to give their existing shareholders the opportunity to buy additional shares before other buyers, and also to enable current shareholders to maintain their proportionate stake in the company cheers buzz
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