Karnalyte Resources Inc T.KRN

Should be interesting to see the total number

[mdjbrown]

of Rights trading hands between now and the end of July. During the last rights go round day traders were moving Rights prices all over the map to capitalize on penny trades before the expiry deadline.

Big risk if you cant unload them in time though

https://www.stockwatch.com/Quote/Detail?C:KRN.RT

[bigkagan]

I won't even touch it, not smart enough for that. Zero volume at 0 cents KRN.RT(KARNALYTE RESOURCES INC.) Real-time $0.000 Bid: $0.025 Ask: $0.035  0.000 Bid Lots: 2 Ask Lots: 1

[mdjbrown]

I think trading for KRN.RT starts tomorrow, so should be interesting to see if there is any demand as shareholders who dont intend on subscribing to the Offering can sell their rights into the bid to add a few bonus bucks to their trading accounts for free. Not a lot of shareholders took advantage of that opportunity in 2018, as they likely were not aware they could sell their Rights, but this

[bigkagan]

So if you have let's say 10,000 shares you get 10,000 rights and you can sell them for whatever the bid is? 

[mdjbrown]

bk, this is not to be construed as investment advice and every investor should always consult an investment advisers advice if you are not sure, but yes, if you held 10,000 shares before the June 28, 2022 Date of Record deadline, you would entitled to receive 10,000 Rights from the corporation. Those 10,000 Rights should appear in you trading account, and can be sold on the open market if you can

[businessense]

Using a more factual calculation this would equate to $1.35 per common share?

[bigkagan]

The Rights Offering is like a call option with the 35 cents strike in case the stock goes up in the next couple of months. By then the technical update will be out and some kind of action will be taken hopefully

[mdjbrown]

Interesting math biz Please do tell how you possibly get $1.35 when the Rights have no assigned value except that 3 rights plus .35 cents equals one common share currently trading on the open market for .45 cents a share As of the end of days close, the Rights are worth .0333 cents each.

[businessense]

Without spending too much time on it, if I followed your explanaiton that it  takes 3 rights at $0.35, to buy a share.  Then converting 3 rights into share would be $1.05. Agreed not $1.35. So yeah, my brain is getting pretty numb with all this. If I missinterprested your explanation, I will evaluate the offering when I take the time to read itl Cheers!

[bigkagan]

Then it's much cheaper to buy one share right now for 47 cents, thank you very much. Maybe I'll set my alarm clock for 8 AM tomorrow after all, heh

[mdjbrown]

biz. it will take 3 Rights plus .35 cents to convert into 1 common share. The share price today was .45 but those paying .06 cents for each Right are essentially paying .53 cents per share of Krn if they convert 3 of those .06 cent Rights plus .35 cents to receive one share of Krn This will very likely bounce all over and I expect a lot of interesting trading of those Rights between tomorrow and