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10-08-2018, 09:06 AM
#251
 Originally Posted by Balance
Doesn’t “Overall, the capital raising has been structured to provide substantially pro rata participation by all shareholders.” Mean everybody wins
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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10-08-2018, 11:41 AM
#252
Originally Posted by winner69
Doesn’t “Overall, the capital raising has been structured to provide substantially pro rata participation by all shareholders.” Mean everybody wins
Only if there's anything to win!
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10-08-2018, 11:47 AM
#253
Originally Posted by winner69
Doesn’t “Overall, the capital raising has been structured to provide substantially pro rata participation by all shareholders.” Mean everybody wins
Read page 26 for I believe is the only mention of the fact that the $20.8m or 18.1m shares issued - are at $1.15 are 'cum-rights'!
http://nzx-prod-s7fsd7f98s.s3-websit...787/283950.pdf
So these favored institutions and investors get their shares at ex-rights $1.08 vs existing shareholders at ex-rights $1.28!
That's at a huge 20c discount!
How the heck is that 'substantially' pro-rata to all shareholders?
Last edited by Balance; 10-08-2018 at 11:48 AM.
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10-08-2018, 02:56 PM
#254
https://www.nzx.com/announcements/322044
Confirmation 18.1m shares issued at $1.15 today.
Share price holding at $1.35 so there's a nice 20c profit or 17.4% profit to be made by those 'fortunate' enough to get access to the placement.
Wonder if the rest of the market (especially those buying today at $1.35) is aware of this 'pro-rata' participation by all shareholders!
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10-08-2018, 03:00 PM
#255
Originally Posted by Balance
Read page 26 for I believe is the only mention of the fact that the $20.8m or 18.1m shares issued - are at $1.15 are 'cum-rights'!
http://nzx-prod-s7fsd7f98s.s3-websit...787/283950.pdf
So these favored institutions and investors get their shares at ex-rights $1.08 vs existing shareholders at ex-rights $1.28!
That's at a huge 20c discount!
How the heck is that 'substantially' pro-rata to all shareholders?
I do not know what the page 26 is in reference to as you link appears to a dud.
While I agree that the $1.15 guys get a better deal, they actually get their shares at an average $1.116 if they take up their rights in full.
That the $1.15 shares are included in the rights offer is stated in the Offer Document (on Page 6).
Always one law for the rich and another law for the not so rich, heh?
Looks like we are getting down to my $1.28 anyway 
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10-08-2018, 03:14 PM
#256
Originally Posted by Snow Leopard
I do not know what the page 26 is in reference to as you link appears to a dud.
While I agree that the $1.15 guys get a better deal, they actually get their shares at an average $1.116 if they take up their rights in full.
That the $1.15 shares are included in the rights offer is stated in the Offer Document (on Page 6).
Always one law for the rich and another law for the not so rich, heh?
Looks like we are getting down to my $1.28 anyway
http://nzx-prod-s7fsd7f98s.s3-websit...787/283950.pdf
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10-08-2018, 03:39 PM
#257
Originally Posted by Snow Leopard
I do not know what the page 26 is in reference to as you link appears to a dud.
While I agree that the $1.15 guys get a better deal, they actually get their shares at an average $1.116 if they take up their rights in full.
That the $1.15 shares are included in the rights offer is stated in the Offer Document (on Page 6).
Always one law for the rich and another law for the not so rich, heh?
Looks like we are getting down to my $1.28 anyway
http://nzx-prod-s7fsd7f98s.s3-websit...909/284120.pdf
Per the offer document, this must be the most misleading statement possible to existing shareholders :
"The Offer follows the successful placement of $20.8 million of New Shares to institutional investors at $1.15 per share, being a higher price than under this Offer."
They are totally different type of shares under the offer!
Conveniently leaving out the fact that these are shares cum-rights so effective entry price (when they take up their rights at $1.05) is $1.08 vs $1.28 for those who hold shares at time of announcement!
Last edited by Balance; 10-08-2018 at 03:42 PM.
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10-08-2018, 08:22 PM
#258
Originally Posted by Balance
http://nzx-prod-s7fsd7f98s.s3-websit...909/284120.pdf
Per the offer document, this must be the most misleading statement possible to existing shareholders :
"The Offer follows the successful placement of $20.8 million of New Shares to institutional investors at $1.15 per share, being a higher price than under this Offer."
They are totally different type of shares under the offer!
Conveniently leaving out the fact that these are shares cum-rights so effective entry price (when they take up their rights at $1.05) is $1.08 vs $1.28 for those who hold shares at time of announcement!
Well given that:
the 'misleading' statement is totally accurate both in fact and language;
there is only one type of shares;
and the effective entry price is $1.116.
I think you may be letting your emotions cloud your rationality. Try and find a quiet spot and practice your mantra chanting (free one included with this post, look below).
Some of us managed to read the documents and do the sums and understand what is going on.
Disc: non-holder and will remain so at current market prices.
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10-08-2018, 08:40 PM
#259
Can't see any reason to get worked up into a stew over this one. Shares subject to such a deeply discounted rights issue in a very poorly performing mutt often tend to end up trading very close to the issue price just before people have to stump up the funds and as more and more investors ponder whether they bother putting their paws in pockets to throw good money after bad. One wonders if the value of the rights will end up being virtually worthless ? How many more tens of millions of other write-offs / skeletons are there just waiting to be let out of the closet when the balance sheet has the strength to stand another lot of write-downs anyway ? Claims of solid normalized EBITDA for years to come is nothing more than brazen window dressing to try and get the desperately needed funds in the door.
Used car salesman selling some old piece of systemically flawed junk will tell you anything you want to hear to make a sale and this has those sort of salesmen's fingerprints all over it in my opinion.
Last edited by Beagle; 10-08-2018 at 08:43 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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10-08-2018, 09:22 PM
#260
Originally Posted by Snow Leopard
Well given that:
the 'misleading' statement is totally accurate both in fact and language;
there is only one type of shares;
and the effective entry price is $1.116.
I think you may be letting your emotions cloud your rationality. Try and find a quiet spot and practice your mantra chanting (free one included with this post, look below).
Some of us managed to read the documents and do the sums and understand what is going on.
Disc: non-holder and will remain so at current market prices.
Good on you then for such profound and insightful reading of document and conclusion indeed!
I am stunned into silent and quiet contemplation of said profoundness of insightfulness!
If only everyone had such depth of ability to understand what is going on.
Bravo, my friend and thanks so very very much of sharing your profoundness with us lesser creatures.
Last edited by Balance; 13-08-2018 at 08:41 AM.
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