RE:RE:RE:Announces Filing of Information Circular BobTheKnob2 wrote:
alkhor wrote: So for each share of Perpetual I will receive 1 Rubelite share and 12 warrents to buy additional Rubelite shares at a price of $2 until the end of September. Does this imply the Rubelite shares will be valued at $2 when issued? Not sure how all of this is going to turn out, I just know I am not putting any additional money into it.
No. That isincorrect.
Having said that there is some parts that are correct. Here is the relevant part from a press release the company issued about a month ago.
Under the terms of the Plan of Arrangement, Perpetual shareholders will receive one Rubellite Share for every 46 common shares of Perpetual held, and for every Rubellite Share received, Perpetual shareholders, under the Plan of Arrangement, will receive 12 Arrangement Warrants. Each Arrangement Warrant will entitle the holder to subscribe for one Rubellite Share at a price of $2.00 per share.
So what that means is that if you own for example 5000 PMT shares - you will receive 108.69 Rubellite shares.
This will be rounded up as per the information circular to 109 Rubellite shares. The company has stated that a fraction that 0.5 or greater will be rounded up and a fraction that is less that 0.50 will be rounded down.
Using this example again, investor with 109 Rubellite shares will receive 1308 Rubellite Arrangement Warrants in addition to the shares. These you can exercise at $2.00 each for about a month (28 days, if I recall correctly). Any warrants that are not exercised in the designated timeframe will expire worthless, and be taken up by the company who has backstopped the offer.
In this regard, they are a lot like a Rights Offering.
Using this example again, with the 5000 PMT shares; you will receive 109 Rubellite shares and 1308 Warrants. If you want to exercise the warrants your financial committment will be $2616. In exchange you will receive a total of 1417 Rubellite shares at the exercise period (109 free as part of the arrangement and the balance of 1308 you had to purchase).
Trust this makes sense.
In addition to this, yesterday the company issued a press release relating to the consolidation and subsequent split. The ratio is 1000 old to 1 new - followed almost immediately by a split of 1 new for 1000 newER shares.
Here is the relevant part relating to this consolidation and split:
Shareholders who own a number of Common Shares less than the Ratio (the "Consolidated Shareholders") will be paid an amount in cash per Common Share equal to the volume weighted average trading price ("VWAP") of the Common Shares on the Toronto Stock Exchange ("TSX") for the 20-day period prior to the effective date of the Plan of Arrangement (the "Consolidation Consideration").
What this means is that if you have a shareholding of 1000 shares or less, the company will pay out those shareholders in cash, prior to the Plan of Arrangement.
There will be no Rubellite shares or warrants available to those shareholders who own 1000 shares or less.