Rights Issue (Hexam)14 Oct 2021 09:11
1st question. Is anybody seriously not thinking of taking up their RI option, and if so, why? My language would indicate that I am basically thinking of getting in, but see the following.
2. Wasn't there an earlier RI (in Jan. 2021?) and at a higher price than what they are currently trading at on the open market? Didn't IAG & EZJ also do the same, and again at a higher price than what they are now achieving?
3 Am I right in thinking that new shares acquired under the RI can not be sold until 02/11? And (and this sounds really crazy), might that not be at the same price as on the open4 market? Surely not?
4. If it is true (Hexam) that “the reduction in value of these (existing) shares due to the RI (only) offsets the value of the discount available on the new shares”, and that "if you do choose to invest in buying further shares (or do not).... then in both cases you haven't lost or gained anything", then why bother incurring dealing costs? Is this not equivalent to just throwing more money into the pot just to stay where you are?
As always, there are more questions than answers, but if anybody has any answers or even just thoughts on these questions, I would be glad top read them. Thanks for reading.