I'm also not buying unless it drops below 38c. FYI, I also have a few shares in Trans Hex. There's a similar situation happening there with a Mandatory offering. Will be interesting to see how these play out.
With regards to the rights offering, I'm a bit concerned. In terms of the Companies Act: "126. (1) If the board of a regulated company believes that a bona fide offer might be imminent, or has received such an offer, the board must notÂ— (b) issue any authorised but unissued securities; (c) issue or grant options in respect of any unissued securities; (d) authorise or issue, or permit the authorisation or issue of, any securities carrying rights of conversion into or subscription for other securities;"
It's possible that they are in contravention of the Companies Act if the rights offer is done in the mandatory offer period or the agreement for Geomer to underwrite the issue was made during the mandatory offer period. If there are any lawyers on this forum whose expertise is the Company Act, I would appreciate any opinions on whether my thinking is correct?