Entitlement Offer

So let’s discuss this entitlement offer.
i believe you’d want to be holding before the trading halt on Wednesday (before we go ex-entitlement).

What we were told today:
•$393m exclusive advertising agreement with NBCUniverse
•Issuing 4.9% of the company in new shares to NBC universe to ‘offset’ cash payments of said agreement (and are valuing new shares at $6.50ea for the purpose of calculating subscription value)
•NBC which will in turn become a substantial holder will also get 66.88m options (exercisable at $13)

Theyve also valued these options at $1.57 each (effectively valuing the stock at $14.57)

What shareholders are being offered:
•1 new share for every 6.5 held (unclear on price yet, will it be at $6.50-$7.50 as value of NBC ‘effect stock price’ or price before this announcement, or will it be a discount on current prices (don’t think they’d go over $13 as this is the price for the options)
•1 new FREE option for every 2 new shares subscribed to

Now it’s unusual for a company to signal a future date at which an entitlement will be offered, allowing people to purchase stock before the pre-determined entitlement date In order to take advantage of the entitlements.

on average for every 1000 shares you hold, you can get:
•154 new shares (at a lower price than current market)
•77 new options for free.

So you’d want to be holding going into Wednesday before we get the full details of this offer, and share price may hold or increase going into this announcement.

long term wise, they’ve now positioned themselves well for future funding of growth and this cornerstone partnership.

Lets not forget the yearly financials which were lost in all the other information today, some good solid figures coming through, and these will only increase, exiting times ahead.

DYOR ofcourse