I'm not an expert in this area, but I read somewhere if you want to go over 20% & not take over the company you have to give up your voting rights on the share above 20%.
Someone else might know better.
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This might help. Seems a resolution needs to be approved by shareholders and the party associated can't vote on the matter.
Seeing that hasn't been put forward the assumption is he won't be able to increase his stake in percentage terms.
https://chapmantripp.com/trends-insi...dely%20defined
I've been in for +/-15 years. During those years, I've bought a few & sold a few shares many times & participated in SOME of the CR's.
During the last 1.8 CR, I purchased double my allotment. I sold all of those shares on market about a month ago @ 2.4, to bank a bit of a profit & get ready for the upcoming CR. I reckoned I'd be able to buy more share for the same amount of money & it will also help the company coffers. That's worked out well.
This time I'm considering putting some further new cash in & buying three times my allotment.
It sounds good when I say it like that. What I haven't said is that my base holding I've always held on too are mostly $.035 shares from a CR (when they got their bulk sampling permit) prior to consolidation which have now become $0.35 shares. I don't think I'll ever get that back for them, but I do stand a chance to recover the cost of them by some timely trading in the interim.
I won't part with those now $0.35 shares until I exit entirely for good. I want them to remain as a harsh reminder not to get too carried away with gold fever ever again with HGD/NTL.
He won't be able to correct, as there has not been a resolution. However if for example further down the track the company wanted to convert the convertible notes to equity, this would have to be approved by special resolution in which he would not be able to vote. However post this, he would be able to vote his shares in resolutions.
What does Jarden Direct know that we don't. They have the NTL market cap at double the NZX at 17.41 mil.
Rights accepted, funds paid, should get them a nice shovel or 2.