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Bowood Energy Inc V.BWD



TSXV:BWD - Post by User

Comment by Pandoraon Aug 11, 2012 7:35pm
504 Views
Post# 20207981

RE: Rights offering

RE: Rights offering

It appears that if you have 5000 shares you get 5000 rights. If you then exercise your rights on a 10 for 1 basis plus 5 cents you get another 500 shares for a cost of $25. This gives you 5500 shares. The consolidation on a 1 for 20 basis will leave you with 275 shares instead of the 250 you would have had if you did not do the rights. i.e. 25 extra shares for $25 or $1 a share.

 

The consolidation at a current price of 5 cents and on a 1 for 20 basis is also $1 a share.

 

Any way you cut it it's a mess. Hosed I believe is an appropriate term. Just another one of those Venture Exchange moves that leaves shareholders as bagholders. How long do you think the shares will stay at a dollar before collapsing back towards 5 cents. Will the Legacy name actually make them stand up and go forward or just fritter away again.

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