If Jigao take up no additional shares in the entitlement offer they will be diluted to 28.095%. That will still be above the minimum 28%, as stated in the subscription agreement, for Jigao to be entitled to two positions on the Board. The 4 for 19 ratio seems to have been arrived at to ensure Jigao maintains its Board presence knowing that FIRB approval of a new issue of share to Jigao is unlikely.
Maybe that is the only way the CR could go ahead.
Come what may, we will still be blighted by a deadlocked Board.
TON Price at posting:
3.5¢ Sentiment: None Disclosure: Held
