Oby Proposal - what is the real plan here? When a corporate shell such as OBY is created as a spin out, you often see an immediate rights offering to the newly gifted OBY shareholders allowing each shareholder to purchase 10 additional shares for each one of the newly received spin out shares they hold. Let's say they price these at 1 cent per share.
If all shareholders participate they will issue 520 million new shares to raise $5.2 million in new capital. For my 400,000 shares I would need to find $40,000 to buy 4,000,000 additional shares to hold onto my pro-rata interest in OBY. My guess is less than half of existing shareholders would participate. The rights offering would then allow other shareholders to subscribe for any shares not taken up, potentially allowing a group of existing Verde shareholders to gain control of OBY at a relatively low cost.
Pure speculation on my part, just trying to figure out what is really happening here.
Anyone else willing to share their thoughts?