My thoughts exactly. Literally just posted something similar in...

First 3 Last

Share
Profile

Follow
notlistening14

2,216 Posts.

957

16/09/16

11:08

Post #: 19200845
Share

Originally posted by NewToItAll ↑

The Directors have determined that offers under the SPP will be made to eligible shareholders, being those who are the registered holders of fully paid ordinary shares in the Company as at 7.00pm AEST on 15 September 2016 (Record Date), and whose address in the Company’s register is situated in Australia, New Zealand or Papua New Guinea

There will be many people thinking now... Great I can sell my shares at the current price of 0.6c, and my name is already recorded down to be able to buy more at the discounted price, possibly even at 0.4c. Great right, Free money!

However, that is not the case...

Has anyone else noticed this line ;

The issue price will be determined at the issue date of New Shares under the SPP based on a 20% discount to the volume weighted average price of Niuminco’s shares traded on the ASX during the 5 days immediately prior to the issue date of the New Shares, and a price which is not less than 0.4¢ ($0.004).

The issue date of the news shares is...
Allotment Date - 17 October 2016

So doesn't that mean that the price of the SPP will be based on the a 20% discount prior to the 17th October?
So what happens if the price by then is 3c?
Most would be thinking that is fantastic!... but not for those that already sold out expecting to buy back in at the SPP.
Because they would be paying 20% discount to 3c... or 2.4c each when they sold out at 0.6c!!!

Very smart move if you are big money... buy all the cheap shares now while people are selling them for the SPP... then bump the price up hard, and you just created a new support line at 5x what you paid for your shares!

I could be wrong, but I would definitely seek clarification on that before selling.

Opinion only.

Expand

My thoughts exactly. Literally just posted something similar in the other thread.

The flip side is Patrersons push the price down so they get more cheap shares from underwriting.

NIU Price at posting: 0.6¢ Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Week 46 Wrap: Copper hits 2mth low as Trump threatens net zero pace; US rally fades; HotCopper’s picks

GDM

Banshee's historic trenches prove rich in antimony and gold for GDM

CUF

CuFe sells its Crossroads gold royalty to Northern Star for $4M cash; says better than waiting for mine launch

IRX

InhaleRX gains approval for clinical trial to test non-opioid therapy for cancer pain

CLE

Cyclone signs MOU with Vale for development of Iron Bear play

HotCopper Highlights: Your most watched stocks for Week 46, 2024

EEG

NT Gov't delivers environmental approval for Empire Energy's Beetaloo Carpentaria pilot gas play

BNL

Blue Star Helium sees approval for five more wells at 'Galactica/Pegasus' project in Colorado

3DA

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

First 3 Last

Add NIU (ASX) to my watchlist

My thoughts exactly. Literally just posted something similar in...

Top Stories

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Week 46 Wrap: Copper hits 2mth low as Trump threatens net zero pace; US rally fades; HotCopper’s picks

Banshee's historic trenches prove rich in antimony and gold for GDM

CuFe sells its Crossroads gold royalty to Northern Star for $4M cash; says better than waiting for mine launch

InhaleRX gains approval for clinical trial to test non-opioid therapy for cancer pain

Cyclone signs MOU with Vale for development of Iron Bear play

HotCopper Highlights: Your most watched stocks for Week 46, 2024

NT Gov't delivers environmental approval for Empire Energy's Beetaloo Carpentaria pilot gas play

Blue Star Helium sees approval for five more wells at 'Galactica/Pegasus' project in Colorado

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Featured News