new issue details

ASX press release this morning reads in part:

Persons registered as shareholders at 10am on Record Date (to be advised) will be offered
the right to subscribe for new shares at 28 cents per share on the basis of 1 New Share for 20
shares held. For every new share subscribed for, shareholders will receive one free additional
share attached to each new share making the effective price 14 cents.


This confirm my initial analysis of the new issue, and I hope all holders/potential holders are left in no doubt as to the real effective issue price, viz. 14c.

A far cry from the misleading comments in ITE's initial press release about the issue being at a substantial premium to market.

My other comment about the issue also remains - in a short period of time after such a new issue the sp will gravitate towards the new issue price, in this case 14c.