4traders is effectively about 3 days behind the news. You snooze you lose. They quote the shareprice at 99c.
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When do we see the rights issue paperwork in the mail? and when should be sent back by?
It looks like we can now buy at 84c on market and the sp could well go lower. Makes me think twice about buying rights at 85c if I can get them cheaper on market (brokerage aside). While I want to support the company via the capital raise I'm not sure it is the best use of my money.
What are others doing?
Its actually really simple. You either buy at 85 via the rights or you buy at 84 on market. I know which one I would choose. Or you do not buy at all and that may be the best bet :) Either way if the share price stays under 85 the rights are worthless and there is no incentive to buy or take up the rights.
With $30 brokerage, only worth buying on market if buying more than 3000 shares. That number obviously drops if the share price drops further.
With some people able to buy at 80c, its a classic overhang situation.
That was the way with TIL after listing, under its original name it went down to .45ish then its fortunes changed and now is $3.50, some shares take a while to come right, Dil was another went down to .20 with all of the officers B S and now $7.00 , better not to miss out on the big $s for a few cents, sometimes we can all be too smart !
What I meant whatsup is that if you hold rights and are deciding whether to take them up, obviously its not worth doing so if the share price is under the 85 cent mark. If the share price was over 85 cents it would be stupid not to take them up. So someone with rights may have been thinking about "buying more shares" by taking up the rights when the share price was over 85. However now as the share price is lower there is no need to buy any shares as the rights are worthless. If the share price recovers as per your examples, then in my example the holder will benefit as they are already a shareholder (by virtue of having received rights).
As far as WYN are concerned, they will get their cash because of the commitments of the instos, so that is not a consideration or issue anymore.