share purchase plan $6.25..last trade $7.40

Looking at a short term trading idea
Currently 15% return (or in the money)

Graincorp is offering shareholders the opportunity to participate in a SPP at the offer price which has been set at $6.25 or at a 7.5% discount to GrainCorp’s VWAP.

This offer is open to any investors that are registered on the record date of 27 May 2009. For people who do not hold GNC shares, you need to buy at least 1 share by NO LATER than Friday 22ND MAY, for trades to have settled on the Record date. Shareholders can apply for up to $15,000.00 worth of Graincorp shares.

However, with the massive amount of minimum parcels currently going thru the register, there is no guarantee that you will receive all the stock that you apply for. Therefore, a scale back is likely should the issue be oversubscribed.

Current share price of GrainCorp is: $7.40; issue price is $6.25
Record date is the 27th of May
SPP offer closes on the 29th of June
Shareholders can apply for up to $15,000.00

The new shares will be fully paid and will rank equally with the company’s existing issued shares. The timing of this offer is as follows:

SPP Offer opens 1 June 2009
SPP Pricing Period 23 -29 June 2009 (using 7.5% discount to GrainCorp’s VWAP OR the $6.25 whichever is LOWER)
SPP Offer closes 29 June 2009 at 5:00pm (Sydney time)

Graincorp is raising this capital to strengthen its balance sheet and improve its financial flexibility to meet their seasonal funding requirements. This should better position GrainCorp to take advantage of growth opportunities in their existing businesses and participate in any industry consolidation.