Post by
HAYMAC on Feb 05, 2016 2:21am
Closing of the Rights Offering
Based on the following saga I think it is safe to confirm that the Jan 28 news release announcing the Rights closing for gross proceeds of $5.64 million includes all rights exercised and over subscritions, so the company came up short of a maximum $7 million by $1.36 million. Achieving 80% isn't so bad in this economic environment.
My saga is that I excercised my 400,000 warrants and requested an over subscription of 200,000 additional shares @$0.10. My rights were in my Investorline account so I called BMO and spoke to a trader and gave him my instructions. For what ever reason Investorline was much slower than many of the other on line brokerages at settling these transactions. On Monday I recieved my 100,000 shares from the rights I exercised. Last night I checked my account to see if I received any portion of the 200,000 oversubscribed shares I had requested. To my amazement there were an additional 800,000 shares in the account. After repeated conversations with BMO today it turns out that the trader I had given instructions to, asked for 800,000 rights that could be subsequently exercised into 200,000 shares, but BMO backroom interpreted his request as being 800,000 additional shares! I accounted for 300,000 of todays 665,000 share volume.
Needless to say it appears that there were lots of unscribe shares available from the last offering.
Comment by
mill44 on Feb 05, 2016 8:54am
You see, this kind of mistake I don't really mind. Of course, it could cost the longs eventually, but you did OK for now.