Thursday, June 21, 2012
Equation: Co is proposing a rights issue of 1 rights share for every 2 existing rights at $0.012. The issue price was approx a disc of 45.5% to closing price $0.022 on 15 May. Book closure date for this rights issue is on 28 June 2012 so ex-date shld be on the 26th June if I'm not wrong . Co will obtain net proceeds of approx btwn $9.6m to $12.9m Due to co having both convertible loans and bonds and employee stock options, its maximum base of shares may increase to 3.0b shares if all convertibles are exercised and allotted rights. Its minimum base may increase to 2.5b shares if none of the convertibles are exercised and allotted rights shares. Co intends to use proceeds to pay off a director loan amounting to $5.0m and increase working capital.