I sold a chunk of BLG when the rights issue was first announced at 2.1c. Hopefully the buyer of those shares (and rights) participates fully. I'll be using the proceeds to pickup some shortfall shares in addition to my remaining rights.
If there is scale back, I'll cop some dilution. Either way, I have engineered some extra $$$s for BLG. The 2.1c low was somewhat artificial.
If you had an average buy price of 20c, your full rights are just 10% of your holding; 40c - 5%, 10c - 20%. The pricing of the rights is set to encourage (force!) participation. It really doesn't cost too much to prevent dilution.
The SP price has been driven low by COVID-19 share route. There has been no real recovery in BLG SP like other stocks because of the outstanding rights issue.
It will be interesting to see what happens when the shortfall is announced. Who ever picks them up is getting a good discount. If your average buy price is 20c, you are topping up at a 90% discount; 40c - 95%, 10c - 80%. Obviously, once the results of the rights issue is announced, we will know how much dilution occurs and hence the true discount.
We will know pretty soon enough what the true level of support for BLG is.
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