Compact Metal

Compact Metal: has proposed a 20-into-1 share consolidation, and subsequent non-underwritten rights issue on the basis of 2 rights shares (issue price of $0.04 per rights share) and 2 free detachable warrants (exercise price of $0.02 each) for every 1 consolidated share. The counter has gone ex-consolidation on 9 Oct, and is now trading on a consolidated share basis. That leaves the rights-cum-warrants corporate action outstanding, which goes ex-entitlement on 14 Oct. To estimate the adjusted price on ex-entitlement, we assume - last traded cum price of $0.176 - full take up of the rights shares - full conversion of the warrants (bcs they are in-the-money) The calculations for adjusted price are as follows: [$0.176 + (2 x 0.04) + (2 x 0.02 ) ] / 5 = $0.0592