Company Warrants Expiring in 2012 - Actions Needed
I need to remind myself all the outstanding company warrants that are expiring in 2012 in my portfolio which I will need to take action. I will update this list accordingly as I go along so that I won't forget about them.
ASJ W120221, Expiry Date: 21 Feb 2012, Exercise price = $0.04, Conversion ratio 1:1 - Warrants exercised and converted to shares.
UPP W120529, Expiry Date: 29 May 2012, Exercise price = $0.36, Conversion ratio 1:1 -No action taken yet.
GOLDAGR EW120723, Expiry Date: 23 Jul 2012, Exercise price = $0.54, Conversion ratio 1:1 - No action taken yet.
ROWSLEY W120921, Expiry Date: 21 Sep 2012, Exercise price = $0.10, Conversion ratio 1:1 - No action taken yet.
NTEGRATORW121011, Expiry Date: 11 Oct 2012, Exercise price = $0.017, Conversion ratio 1:1 - No action taken yet.
SHS W121015, Expiry Date: 15 Oct 2012, Exercise price = $0.23, Conversion ratio 1:1 - No action taken yet.
PAN HONG W121027, Expiry Date: 27 Oct 2012, Exercise price = $0.66, Conversion ratio 1:1 - No action taken yet.
AZTECH W121123, Expiry Date: 23 Nov 2012, Exercise price = $0.20, Conversion ratio 1:1 - No action taken yet.
Labels: Warrants
posted by ghchua at 7:24 PM
5 Comments:
Hi ghchua,
I am impressed by the vast knowledge you have in regards to rights, warrants, etc that tagged along with shareholdings. You know what you need to do or not to do. But, I am clueless and at times felt intimidated.
I have RH Energy in my portfolio, and recently the Company offered the shareholders to buy warrants that entitled them to buy shares at $200 per lot. That is the way I understand it.
The problem is that the share is trading at $130 per lot today. Wouldn't it makes sense if I will to just buy it straight from the open market than to go through the complicated process of adding more shares?
I always felt so helpless when companies come up with rights, consolidations, and warrants. I just wonder how you handle all these?
Hi Everlearning,
I think there is no short cut when deciding what to do with corporate actions like rights, warrants etc. You have to read the offer document and understand why they are raising the money, for what purposes, any undertaking or underwriters for the issue etc. Of course, price matters in the end and you have to decide how much rights (plus excess rights if you want more exposure) you wish to take up. Remember that there will be dilution to your existing holdings in the company if you don't take up rights issues.
Warrants do have time value and it might not be enough by just looking at the exercise price. I am not a shareholder of RH Energy, so I admit I didn't really follow the company. But from what you said here, it seems that it is a raw deal since the warrant exercise price is 7cts higher than its current share price. Have the rights entitlement started trading yet? If yes, how much is it trading at? That might give you an idea how much your rights is worth now and whether it is worth subscribing for the warrants.
If you don't wish to subscribe, you can try to sell your rights entitlements when it starts trading. They normally trade for only one week or so and you have to make your decision fast.
Hi ghchua,
Many thanks for helping me see the needs to respond to issues like these.
Oftentimes, my initial response towards such routine is negative. But, as you said, I must act fast and make decision whether to accept or not.
May you find love, joy and peace at Christmastime and the coming new year.
Hi Everlearning,
Merry Christmas and Happy 2012 to you! May all your investments bear fruits next year.
These warrants are due to expire in Nov 2012 and will lapse if not ... shares to its total shares outstanding and raise S$43.5m for the company.sell structured settlement
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