TEKMODO INDUSTRIES INC RTS V.TEK.RT

mech and king...

[Wangotango67]

How do you guys read todays press release ?
Maybe I'm misconstruing...?

Is this pp, only for existing shareholders ?

Would the owners be purchasing shares, placing their monies in company through the vehicle of shares....hence quick turn around of shares ( timeframe )  that  can be sold ?

Am I right or wrong, or is the press reading another way?

Share your thoughts...

Thanks...

[mecheng]

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[WatchLearnEarn]

Other rights offerings I have participated in also provided an "over-subscription" option meaning, in your example, you could buy more than 100,000 shares. I have as much as quadrupled my position during other offerings.

[WatchLearnEarn]

Just found the PR on SEDAR. So, yes, there is an "Additional Subscription Privilege" and you can buy many more than just the shares you own on the Record Date. Of course then those get cut 2.5:1 by the consolidation.

[quicksilver545]

I'm pretty sure Additional Subscription Privelege allows you to get up to 100% of the stock you purchased under the Basic Subscription Privelege. In other words, you can only up to as many shares as you get under the basic subscription. I've yet to see an offering without some proration though.

[WatchLearnEarn]

No, that's not the case. You can buy much more. Example: I had 40k shares, elected a basic subscription for another 40k units and then was allowed to submit an oversubscription election for another 223k units which when multiplied by $0.015 represents the remaining cash in my account. If I had more money in there the number of oversubscription units could have been even higher.  I'm

[quicksilver545]

Wango, This is a rights offering, not a PP. Rights offerings are a way companies can raise capital from existing shareholders, rather than going to PP for funds. I much prefer rights offerings over PP as they give existing shareholders an opportunity to increase their capital positions without the dilution of a PP. In a PP, all existing shareholders get diluted as the share count goes up, and