I am smiling, and this is a strong endorsement on Seadragon.
Printable View
I am smiling, and this is a strong endorsement on Seadragon.
Absolutely a good deal for them, but also for other share holders. Essentially those Rights were there to be taken up with the same conditions to every shareholder. They are not offering any new shares, just those that are not taken up. It is a win win in my view
I haven't done the maths but I think they may potentally be offered new shares :
Quote:
SeaDragon will scale Comvita's final investment commitment in the shortfall
bookbuild to ensure it obtains sufficient shares through the rights offer
together with options attaching to the shares issued through the rights
offer, to obtain a 19.9% stake in SeaDragon .
- Option agreement
SeaDragon has agreed to grant to Comvita an option to subscribe to additional
ordinary shares at a price per share of $0.008 per share resulting in an
aggregate subscription price of $3 million. The option may only be exercised
in full and it must be exercised by Comvita before 1 October 2017.
Not saying it is a bad thing, just that it is a good deal for them.
When does the rights issue close? Wasn't it Friday? Cant see how this can be compliant with continuous disclosure. I think alot of existing investors would have approached the rights issue differently if they knew "we now have another SOLID cornerstone shareholder and one that has a great track record."
Reading this : http://www.sharechat.co.nz/article/d...il-supply.html The $3m is new shares on top of the existing underright. My calculator ran out of digits (seriously - a share consolidation cant come quick enough.) to figure out how many shares they will get and what percentage they may end up holding
I would think that the current S P is capped for now at .013/.015 until SEA has some good runs under its belt, cheers.
Low volume distorts things badly - remember there are another 1.25 billion shares about to be issued would suggest a temporary bump up. If they can hold at or above .008 then that would be a win.
No surprise the management team were so bullish about taking up rights issue - nothing immoral there!?
And doing the math - CVT pay $2m now - up to $3m 2017 for 19.9% - only way that math works is if the exercise on options is .008 not .015 like everyone else? Could be wrong though.