Just Energy Group Inc. (Canada) JENGQ

RE:RE:RE:RE:Exercise subscription right?

[rico91]

Thanks energy,
I do understand that the new share price of 3.41 probably under prices their value. If we look at the current share price as I write this of .60, the new shares would have to rise to .60 x 33 = 19.80 to break even.
You have to remember that millions of shares will be issued @ 3,41. Assuming that the share price rises, there will be pressure for investors to cash out for a profit  at 4? 5 ? 6 ? 8?
If I wanted in, I would be waiting for the new shares to start trading. Anyone buying shares today will not be given new shares options for 3.41 !
All shares trading today will be wiped out and exchanged for 1/33 of a new share. if your new share rises quickly to $10,  it will effectively be worth $10/33= .30
I will take my chances that I will be able to buy new shares at less than $10
Rico