RE:RE:RE:RE:OMO This has been one of the very few companies that I've seen do 'Shareholder rights Offerings' which at first I didn't fully understand, but once I went through the first one, I loved it. I've participated in all 4, over subscribed in the last 2 & and purchased extra rights off the market in the 1st one because I didn't understand how over subscription worked. I feel more companies need to take that approach when looking for a cash injection.
So often these financings are given to 'underwriters', like this case to decide who gets what, others to 'accredited' (already well off) investors, rather than current supporters.
I would have been fine to go outside us, shareholders, had they not gotten enough of what they feel they needed to grow and move forward from another 'shareholders rights offering' which I believe have all been well over subscribed, one was over the over subscription limit that I think I only got 40% of the extra shares I requested (which are felt out in a fair system).
And the statement from the company says that 'it allows them to expand thier shareholder base', What's wrong with the current holders? And I thought that MKP shares were on the TSX allowing all interested parties to buy shares if they so wish for 6 hours 30 minutes for over 250 days a year... Am I wrong to believe that anyone who wanted to invest here already had the ability to participate in the market?
This offering is only $25 million + $3.75 M (over subscription), the past Shareholder rights offerings were $34.3M, $33.3 M and $20.4 M (in the same year) & $15.3 M (9 years ago), seems like the shareholders have been more than eager to add to the coffers in the past.
Why are we trying to change something that has worked extreamly well in the past?
And incase you don't remember other reasons to be less than impressed with new management:
- they announced that they expected to pay a special dividend, then walked it back...
- announced the latest dividend hike using convoluted maths to state a headline % that overhyped what they actually increased...