I have spoken to Credit Corp today. The scale back is proportionate to the number of shares you held at the record date being 28 April 2020.
I've emailed them stating that this is almost deceptive as the offer itself was not on a proportionate basis and no where in the booklet does it say that it would be scaled back in a proportionate basis.
The absolute discretion to scale back clause also doesn't state the basis of the scale back.
The fair way to do this would be to divide the offers by 2.9 but that is not what they will be doing. If I knew this I would have bought more shares prior to the record date.
I held 317 shares and deposited $30,000 under the SPP. I was told I would be getting most of my money back and allocated 30 shares.
This sounds like a class action law suit for misleading and deceptive conduct but having spoken to an equities guy he said this is pretty normal for them to favour their majority shareholders.
CCP Price at posting:
$18.41 Sentiment: Sell Disclosure: Held
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