Facts: Total outstanding shares of ANS today are 5 billion shares.
How much do you want to raise? Let us play with numbers.
Scenario 1: Right issue 1 for 1, each shareholder holding one share of ANS is eligible to subscribe for one new share, additional 5 billion new shares to be issued, let say offer price at 0.015 which are equal to $75 million (assumption: fully subscribed). After the issuance of new shares, total projected outstanding shares would be 10 billion shares.
Scenario 2: Right issue 2 for 1, each shareholder holding one share of ANS is entitled for two new shares, additional 10 billion new shares to be issued which are equal to $150 million (offer price at 0.015) (Assumption: fully subscribed). After the issuance of new shares, total projected outstanding shares would be 15 billion shares.
Scenario 3: Right issue 3 for 1, each shareholder holding one share of ANS is entitled for three new shares, additional 15 billion new shares to be issued which are equal to $225 million (offer price at 0.015) (assumption: fully subscribed). After the issuance of new shares, total projected outstanding shares would be 20 billion shares.
Scale of SDL value based on current share price at 0.005 and face value of convertible notes.
Total convertible notes (debts) of SDL are equal to $136 million + market cap of $40 million (8 billion shares at 0.005). Total debts plus market value of equity of SDL are equal to $176 million.
As a shareholder of ANS, will you subscribe to the right issue for either scenario? Good luck. Lol.
Theoretically, in any take over, the acquirer (bidder)'s share price will generally go down. In contrast, the target company's share price will go up significantly.
Furthermore, any right issue involved shareholders' approval will take more than 3 months. Do you think that SDL could wait for such long time? Are you dreaming in daytime? So please speak after doing your research and calculations.
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