Ann: Despatch of Offer Document and Rights Offer Now Open, page-29

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Boom69

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02/08/23

11:48

Post #: 69115146
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Originally posted by Callsign30: ↑

Firstly, you are actually caught between a rock and a hard place. I will explain that at the end.

You have the 'right' to purchase up to 4 times the amount of shares you currently hold.

This in theory would protect the overall value of your shareholding post consolidation. In theory !

If you have 500,000 XTC you will be allocated 2Million rights (x4)

If you want those 2M rights, then you must pay .001 cents per right.

So 2M rights = $2K purchase price.

Before the rights expire you must decide if you want to exercise your rights. You dont have long to make that decision.

That means you can convert your rights into XTC shares up to 2Million but you must pay another .001 cents per share purchased

If you exercise your rights to buy 2Million shares then thats another $2K

Total spent is $4K for 2Million extra shares (only $2K if you dont buy the rights but instead just buy 2M XTX at .001)

This is why XTC have made a mess of this because it doesnt make sense to buy the rights you have been allocated with the current price of XTC.

Pretty simple so far.

You have another option:

You can sell your rights by placing a sell order for XTCR for up to 2Million rights. This costs you nothing to do.

At the moment there is over 1 billion rights being offered for sale at .001

Pretty tough market to sell your rights in.

The ability to sell those rights expires very soon.

Then they will dissapear from your holdings unless you decide to buy the rights.

The issue is, if you dont buy those rights, when the consolidation happens you lose a big chunk of your shares in XTC.

So your 500,000 XTC shares will be reduced to 2500 shares (XTC consolidation is a reduction of 200 shares into 1 share)

So back to the rock and the hard place.

Potentially this could have worked in your favor IF XTC was not loitering at .001 but because it is, there is no incentive for anyone, aside from the stupid, to buy your rights should you decide to sell them at .001

Assuiming you sold your rights for .001 the buyer would still need to pay another .001 to convert the rights into shares, before the expiry date of the rights, therefore shelling out .002 which is twice what the buyer would pay if they just bought XTC on market at .001

XTC have botched the management of the consolidation.

What should have happened was the release of some posiitive news (buying a new licence is not positive news when they have a potentially great license to explore right now)

Expand

Absolutely correct….They have completely shanked this! It actually could’ve worked well if the issued the rights then had news to go with it pushing the SP up towards .003 / 004c, then you could’ve sold half your rights @ .001c and used that money to buy the shares on the offer form @ .001c costing you nothing…now that would be a win for everyone!
But this was never a chance to work without the news or a SP upwards driver….it’s actually astounding how f$&kn dumb this has been handled….and these guys are selling them self’s to be experienced business people…a welders dog could see it was never going to take off!!!

XTC Price at posting: 0.2¢ Sentiment: Sell Disclosure: Held
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Ann: Despatch of Offer Document and Rights Offer Now Open, page-29

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Ann: Despatch of Offer Document and Rights Offer Now Open, page-29

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