Katanga Mining Ltd Ord KATFF

Will Glencore allow the price to drop more?

[stockhunter20001]

if the price drops below .265 they won't be able to cover the debt for 1:15 rights share correct? They will need 20 or 30 shares per owned share. Can they go more than 15 shares rights?

[Sogosohubidu201]

I don't think that Glencore is allowed to re-price the rights offering after the news release. If Glencore is trying to do that, the regulator will not approve it.  I am hopefully though that Canadian regulator may force Glencore to change the price to 6 months or 12 months of average price and drop the 25% discount if strong compains are received by the regulator or delay the rights

[Sogosohubidu201]

15 to 1 rights offering to raise $7.6 billions Canadian with 25% discount in the press release had clearly stated that the price would be 0.264 share price. Any change of that is re-pricing after news.

[JudgeHolden]

Hey Sogo, Correct me if I am mistaken, but as I read the news release, on November 7th Katanga filed the preliminary short form prospectus with the intention of raising 7.6 Billion CDN. “ZUG, SWITZERLAND, November 7, 2019 – Katanga Mining Limited (TSX: KAT) ("Katanga" or the "Company") announces today that it has filed a preliminary short form prospectus with securities