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AQUARIUS

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sak
New Contributor
Do any one know why AQUARIUS price drop with 35%
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12 REPLIES 12
Valued Contributor
rights issue
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Super Contributor
Additonal securities listing. So more shares divided by current market cap = lower share price
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Super Contributor
So what happens with the shares that one may have ? Do we get additional shares ? Basically can one explain how this will work
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Valued Contributor
you'll get NPLs that you either have to sell or pay to convert into AQP shares .. they expire so don't dawdle ..
video at http://www.justonelap.com/webinarDetail.asp?intWebinarID=23
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Super Contributor
Thanks what are the terms, like price or expiry date
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Super Contributor
Can someone please explain : Terms of the rights offer are that shareholders will be offered two shares for every one held at a price of R2.41 requiring an outlay of R4.82 per share held if they do not wish to be diluted.
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Super Contributor
Although a shock, this is old news. Refer to SENS 07/04 AND 15/04. They are issuing shares to cover approx 58% of the $300mil convertible bonds due next year. Some pertinent points from the rights offer is "976,206,906 new common shares to be issued", "A$0.25, 14 pence, or ZAR 2.41 per Rights Issue Shares(depending upon the register on which the shareholder holds its common shares)" and "Ratio in which the securities will be offered- 2 Rights Issue Shares for every 1 fully paid common share held". A final decision will be taken on 15May as I understand it.Typical of AQP management, they are being pro-active in dealing with the debt issue now rather than wait till next year although there is still a further $128mil bonds too deal with and I don't quite understand why they made the rights offer so cheap. Either way, as Simon says. when the NIL's get issued act right away. I hope this helps.
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Highlighted
Super Contributor
As I understand it FEK, for every one share you hold, you will be offered a furthr 2 shares. So, if you follow your rights, you will end up with 3 shares i.e R4.82 + (what you paid for the 1 share lets say R7.50) i.a.w. R4.11 each.
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Regular Contributor
Can one expect a good buying opportunity in 3 days time ("3 day rule") or is it not applicable to this situation?
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Super Contributor
i.m.o not applicable since valuation has not changed. What annoys me is that their were 2 full trading days since the announcement yet did not see the shorting opportunity. Hands up anyone who did?
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IAM
Contributor
But what are the implications of the rights offer on your short?
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Valued Contributor
short wouldn't have worked as you would have to deliver the NPLs to the market you sold to
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