SVR - Savor Ltd (Formerly MOA)

[Balance]

Balance, these preference shares were effectively cancelled by the Board. They were only ever going to be of interest if the share price reached 2.2x the IPO price (ie $2.75) after 3 years. when they could be taken up by paying $1.25
Because they were issued shares, they were effectively financed on the books by a non recourse loan. There has been no gain whatsoever to the holders or cost to shareholders.
These shares were also entitled to the rights issue regardless of the current shareprice being well below $1.25. However, the board decided that wasn't really fair so redeemed or effectively cancelled them and they are now a total non issue. I think in this case the board has acted honourably.

They were 'in-the-money' options effectively and valued as such, would be worth around 25 cents per share to the holders at least - so they have certainly cost shareholders.

If they were really honorable, they would either take up the pref shares (cash for the company) or forgo the rights issue.

They convinced the market their ideas were worth tens of millions of dollars - be really great if they put some of their own millions to back up the ideas?