PAK currently has fully paid ordinary (FPO, the 11c shares) shares and the PAKO (options expiring Dec 2017, the 2.8c shares).
The letter advises PAKO holders that they are undertaking a rights issue for the PAK shares. PAKO sharesholders are not eligible to participate in the raising.
They are trying to gently entice PAKO holders to convert their options to PAK ordinary shares by paying the amount due in Dec 17 (as well as lodging a form with the broker to confirm they want to convert their options to ordinary shares).
If this was done prior to the entitlement date for the offer (7th of November from memory) then you would have been entitled to participate in the rights issue.
So, in summary, the announcement serves 2 purposes.
1. Advises option (PAKO) holders they are doing a capital raising on PAK head stock
2. Providing subtle encouragement for option holders to convert to ordinary shares prior to cut off date so those shares would become eligible for the capital raising offer.
In my mind, it would probably be close to impossible to have the options converted to head shares now and be in time to participate in the raising.
Hope this helps.
PAK Price at posting:
11.0¢ Sentiment: Hold Disclosure: Held
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