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2.5¢ phoslock environmental technologies limited

Ann: Bonus Issue of Shares, page-20

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T89Rex

122 Posts.

32

11/09/19

11:09

Post #: 40379204
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Originally posted by redram: ↑

Sorry Mickem but you are missing the point entirely. You have not been given anything. You hold a certain percentage of PET. After the "bonus issue" you will hold exactly the same percentage of exactly the same company. NOTHING WILL HAVE CHANGED.

Lets look at it this way. You hold X amount of shares. On the 20 September you hand YOUR shares over to Mr Schuitema and ask him to chop them up for you. He obliges and cuts them into smaller pieces for you and hands them back. YOU OWN THE SAME THING. The bonus is being paid to you by yourself not the company. Do not confuse any share price movement with this slight of hand. The share price will go up or down based on market sentiment and company fundamentals. This "bonus" has no bearing on SP other than the one off (and permanent) dilution of 0.5%. Your holding on 21/9 is exactly what your holding was on 20/9. If you are impressed that they have chopped your shares into smaller pieces maybe you should ask them to chop each share into 1000 pieces for and you will be a rich man.

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This is true if the market prices in the dilution of shares. That may or may not happen.

i generally agree with your point though.

PET Price at posting: $1.31 Sentiment: Buy Disclosure: Held
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