sorry, that cut and paste is quite difficult to read but it is available on page 68 of their annual report. 8092 shareholders! quite well spread out.
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sorry, that cut and paste is quite difficult to read but it is available on page 68 of their annual report. 8092 shareholders! quite well spread out.
The bigger ones already topped up as part of the 15 mil raised
But yes a pathetic amount to offer the likes of Percy, unless he became sophistated and was part of that 15 mill
According to https://www.nzx.com/files/attachments/189274.pdf they will not be accepting over-subscriptions.
"If Heartland receives applications in excess of $5 million, it will scale back all applications on a proportionate basis."
Are they allowed to change information already released to the market? Also, I can see no reason for them to accept over-subscriptions - what would they do with the additional funds?
It appears to me that the $5 million is just a nod to small investors, giving them a foot in the door, rather than a serious capital raising exercise. I am sure they could have raised all $20m through placements.
Good hing about his type of acquisition it will give Snoopy plenty more to analyse
I preempt him ..a large exposure to residential mortgages and the exposure to people dying wen they not meant too
Do they re-insure them. I thought the idea behind these were you charged a higher interest rate but only allowed them to have a low LVR - the reason being the higher risk of having to deal with the property when they 'go to the farm in the sky'. So no extra risk, just extra admin.
No one has commented on the expansion into the Australian market with this acquisition. I wonder what the plan for that is.
They dont get chucked out, that is guaranteed provided the meet the conditions (insurance etc). There is also a no negative equity guarantee though I am sure they have actuarial staff on hand to ensure that never happens. A 60yo cant borrow more than ~20% of the value of their house (a 90yo has a LVR of 45%), but get charged a 1.5-2% premium to normal floating rates.
It seems that will be kept as a separate entity. It could act as a foot in the Australian door or is set up to sell. My guess is a the latter at this stage of the companies growth. However, it will bring the company to the notice of Australian financial institutions.