This reads well to me. RAC goes out to advance plans and raises 5M, and the extra shares dilutes our future profits by around 1%. Bummer! Some companies would be OK leaving Shareholders in the cold. Not RAC
In order to compensate shareholders, we are rewarded with a bonus options at a ratio of 20:1 or 5%. That is 5 times the amount that was raised. Assuming these all get exercised, we, the shareholders are diluting our share value by 5% but also acquiring 5% more. Of course RAC gets $4.50 so you can calculate your own dilution based on existing share price.
What is important however, is RAC has now given ALL shareholders equally the opportunity to buy more shares at $4.50 between now and next year. Assuming around 143M shares, at 20:1, that makes 7.15M bonus shares. RAC should receive steady cash flow over 12 months to the tune of 7.15 * $4.50 = $32M. With this rolling in, I can't see another CR again
And if RAC does not do well, this transaction today will have cost us nothing. Well done RAC
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Last
$1.94 |
Change
0.055(2.92%) |
Mkt cap ! $330.4M |
Open | High | Low | Value | Volume |
$1.89 | $1.96 | $1.85 | $333.0K | 174.5K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 3105 | $1.94 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$1.95 | 7574 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 3105 | 1.940 |
2 | 30000 | 1.900 |
1 | 4861 | 1.880 |
1 | 3000 | 1.850 |
1 | 30000 | 1.840 |
Price($) | Vol. | No. |
---|---|---|
1.950 | 7574 | 1 |
1.995 | 10037 | 1 |
2.000 | 8000 | 3 |
2.020 | 4000 | 1 |
2.040 | 2000 | 1 |
Last trade - 16.10pm 12/07/2024 (20 minute delay) ? |
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