lol 20% a worthwhile saving? Not when it goes straight back through .4c after the issue. May as well buy on market at .4c and stop wasting your time.
Look you can argue many positives about NWT if you like but surely no-one sees any real benefit from an investor's point of view in relation to this SPP. Its just blind faith.
Think of it this way. Let's say you own 10mill of this beautiful stock. $50K worth. Now you fully subscribe for your $15K at .4c, but you dont get the full $15K because they are only trying for $5mill and there are 6,000 holders (or more). 6,000 x $15K = $90mill, doesnt go into $5mill, so your holdings are going to be scaled down, let's say by 1/5th (it would be more but just for the exercise and easy of calculation). You get $3K extra at .4c, so 750,000 extra shares. Great.
Now this is where the problems start. Shares are sold down back to .4c anyway, so your shares are only worth what you paid for them anyway. On top of this, they have just issued another 1.25bill shares. So your 6.7bill shares is now 7.95bill, or a dilution of approximately 18%.
Lets go back to the original shares you had. 10mill is really now only the equivalent of 8.2mill in value. Add your 750K, you have the equivalent of 8.95mill. So end result is you used to have 10mill but instead you've paid $3K and have less value in shares.
It's a con, and anyone who really understands what they're buying would not go anywhere near this SPP. This is why I dont think there'll be alot of interest in it at all, and that is why newtg is alredy preparing us for this by saying that NWT dont really need the $5mill anyway.
The question you have to ask yourself is why did the company resort to this SPP when it was always doomed to failure. There'll be some personal benefit to AB in there somewhere.
NWT Price at posting:
0.5¢ Sentiment: None Disclosure: Held
