WE Holdings

WE Holdings: goes ex-rights on 29 Jul. This involves a renounceable 1-for-1 rights issue @ $0.015 plus one free warrant with exercise price @ $0.03. The warrants may be exercised from the date of issue and have a life span of 2 yrs. The corporate action is a complex one that involves derivatives, hence we can only give a broad estimate of the ex-rights price. Since the rights and warrants are deep in the money, we assume full acceptance of the rights and expected full conversion of the warrants. Assuming the last traded cum-rights price is $0.096, we estimate the ex-rights price = [ 0.096 + 0.015 + 0.03 ] / 3 = $0.047