You are reading a single comment by @hippy and its replies.
Click here to read the full conversation.
London Fixed Gear and Single-Speed is a community of predominantly fixed gear and single-speed cyclists in and around London, UK.
This site is supported almost exclusively by donations. Please consider donating a small amount regularly.
hippy
andyfallsoff
perfect ChatGPT fodder (though the summary seems longer than the original)
...
Sure, let me explain the terms provided in plain English:
Ex-entitlement Date (29 October 2023): This is the first date on which the shares will trade without the entitlement to the rights issue. If you buy shares on or after this date, you won't receive the rights that are being issued.
Rights ratio (1 right for 10 shares): For every 10 shares you own, you'll receive 1 right.
Subscription ratio (1 share for 1 right): You can use one right to buy one new share.
Exercise price (USD0.43 per new share): If you choose to use your rights to buy more shares, each new share will cost you $0.43.
Pay date (28th November 2023): This is the date when you need to have paid for any new shares you've subscribed to, and when those new shares will typically be added to your account.
You have three options:
Let the rights lapse (default option): If you do nothing, your rights will simply expire. You won't get any new shares, and you won't be out any money.
Exercise your rights: You can choose to use your rights to buy more shares at the stated price of $0.43 each.
Apply for additional shares: After you've used all of your rights, you can ask for more shares. However, there's no guarantee you'll get them, as it depends on whether there are extra shares left after everyone else has used their rights.
If you don't tell the company what you want to do by the deadline, they'll just assume you've chosen to let your rights expire.
Regarding the rights issue:
For every 10 shares you held before the ex-entitlement date, the company gave you 1 right.
You can use each right to buy one more share at $0.43.
If you want extra shares beyond your rights, you must first use all of your rights. But be aware, if not enough extra shares are available, you might not get all the extras you asked for.
They're also offering extra options as a bonus:
For every 4 new shares you get by using your rights, the company will give you 3 free options.
You can use each option to buy another share at a higher price of $0.65, but you must do this before the options expire on 30th November 2024.
When you respond to the offer, they might need to share your personal details with their custodian.
However, if you're outside the USA, there could be legal restrictions, and the company might reject your participation based on where you live.
Lastly, they remind you to make sure you have enough money in your account to pay for any new shares you want to buy and to check the legal requirements in your own country.