Say someone had 9 million shares before the cap raise and the person ends up with 3 million new shares (1 for three offer). Does that mean the person is entitled to only 1 million options (1 option for 3 new shares issued)? This is my understanding but still not 100% sure.
If this is the case, the options are worth a lot less compared to holdings before the cap raise. 9 shares before the cap raise entitles one 1 option. Assuming 1 option is worth 0.9c, it gives a value of 0.1c per share. So, selling below 2.4c does not seem logical to me based on this. I am really surprised the share price went down to 2.2c.
However, it would be a different case, if the person is entitled to 1 new share plus 1 new option for three existing shares.
MEL Price at posting:
2.4¢ Sentiment: Buy Disclosure: Held
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