Karnalyte Resources Inc T.KRN

GSFC to invest in rights issue of Karnalyte Resources Inc

[mdjbrown]

"based on the recommendation of the Audit Committee, the Board of Directors of Gujarat State Fertilizers & Chemicals Ltd (GSFC) at its meeting held on 21st July, 2022, have decided to invest in the rights issue of M/s Karnalyte Resources Inc. up to an amount not exceeding CAD 4.9 Mn. equivalent to ~ Rs.31 Crs."


https://www.equitybulls.com/category.php?id=316884

[cashworx31]

This post has been removed in accordance with Community Policy

[businessense]

That would be in line with the Circular - 14 million shares at $0.35 Owever, is this not more than 3 rights for 1 share since they currently have 16,334,558? Would be fullish not to and that they continue to be committed.

[bigkagan]

A few days ago I sold my Rights and then bought some regular shares for 36 cents in my self-directed account for $10 fee just to average down. Had I bought shares using RT's I would have to call my broker and he would have charged me an arm and a leg for this transaction I suspect. If Danielle and GSFC are buying shares they must know something, they wouldn't throw money on dead shares

[mdjbrown]

Biz, the $4.9 million mentioned in the press release would cover the entire Rights Offering. If this Rights Offering is similiar to the 2018 Rights Offering, very few shareholders participated in it, and GSFC through the Backstop Agreement managed to purchase the majority of the shares available. The press release information regarding GSFCs willingness to drop $4.9 million on the Rights

[mdjbrown]

Had to dig deep for this one lol https://www.bseindia.com/xml-data/corpfiling/AttachHis/5fe58438-6afa-49e9-85fb-4bd2934f4c3e.pdf

[bigkagan]

Wow, how did you know it 3 days before the official news release? If this was a price-moving step you could have made big money buying the stock before the news release, but unfortunately it did nothing for the price of KRN, hah

[mdjbrown]

bk, keeping on top of GSFC docs is very useful as it is highly unlikely Krn will doing anything with out GSFCs blessing considering their contol of the corporation. Should be more than 50% after the closing announcement on August 10th Approx 57 million shares outstanding after the Subscription if fully excersized, and GSFC may hold as many as 29 million of those shares Quite an upgrade from the

[bigkagan]

I guess we had a delayed reaction today to this news