RE:RE:Valuing the PNG Bus w/rights offeringAuburn,
I think it's a little different here. Currently, each shareholder owns a specirfic percentage of 100% of the PNG business. Why should we be asked to put more money in to keep our percentage the same? Especially at the time they're ready to ramp up the business? If it's capital they need, then don't give us the RoC. This has got nothing to do with a capital raise. It's ridiculous that they're asking us for more money for absolutely NO reason.
Moreover, Maguire's comments about the late 2020s makes me laugh. The ramp up will be happening next year. These guys are being totally opportunistic with this.
BTW, re: CC
1. Maguire confirmed that the money "raised" will go to the Canadian entity and that some of the money after the RoC will also go to PNG (no specific amount was given)
2. I inferred. from the answer to one of the questions. that the rights price will likely be higher than the $0.75 RoC payout.
3. There will likely be an "over-subscription" option whereby investors can increase their percentages.
4. They're looking at a backstop should fewer than expected shareholders participate.
5. The OSC will not allow the rights to be traded on an exchange given the current scenario.
We'll have to wait for the circular for more information.