Orbite Technologies Inc EORBF

RE:RE:RE:Another punitive financing (like Crede or E P) comming?

[driftwood57]

Pinotblanc,,, I get your point but it doesn't really work that way.

In a Shareholders Rights Offering each shareholder is offered the right to purchase only the preportionate amount of shares on a percentage basis of the amount of shares that they already own.
So a small investor would only be offered the right to purchase a small amount of shares.
A large existing shareholder would be offered more shares based on the percentage that they own of the entire existing share float.

Assuming a $20 million target to be raised.
Existing float of 350,000,000 shares.
share price of 30 cents.

$20,000,000 divided by 350,000,000 shares = $0.057 per share to be raised.

Therfore if you own 10,000 shares times .057 = $570  worth of shares would be offered to you.
$570 divided by $0.30 (shareprice) = 1900 shares would be offered to you.

This is a very simplified calculation of the situation which does not take into account any discount that may be offered to those who participate and other factors but basically that is how it works.

So,,, for EACH 10,000 shares that you own you would be offered the right to buy 1900 more at a price of 30 cents ($570 worth) if the target to be raised is  $20 million.

One half of that if you drop the target to $10 million ( so $285 per 10,000 shares owned would be the cost of subscribing)

It may seem like a high number compared to most  other SROs but you have to remember that the target of $20,000,000 is a high target for a company with a worth of just over $100 million.
Roughly 20% of the current value of the company. That is a very significant amount of financing.