While i accept that it is only a 1 for 20 rights, if this does trade at $7.50 that means they must buy back another underlying share for every 20 they sold less 6.50.
If GH is right and they can buy at $6.50, no harm done. Can someone confirm my logic, i think this is exactly the same as a dividend paid when you are short. The shorter pays the divi.
I own 20 shares.
I loan them to GH
He short sold them for $7.17 last week,
Rights issue at $6.50 1for 20
GH owes me my 20 shares back plus my right to 1 share at $6.50. If ore is trading at 7.50, it will cost him $1.
Am i right in this assumption albeit he could buy the renouceable right?
ORE Price at posting:
$7.17 Sentiment: Hold Disclosure: Held