Entitlement Offer

Just want to make sure that I fully understand the Entitlement Offer:

Each shareholder can subscribe for 1 new VXR share for each 7 VXR shares they own as of the record date of May 20th at $0.08 per share.

For every two shares acquired, the holder will receive 1 option to purchase new securities with an exercise price of $0.135 and 2 year expiry. The options are at no additional cost.

The offer closes on June 7th and the shares will be issued 8th June.

Over subscription is not allowed. There are sufficient new shares being made available that no scale back is necessary.

That last line I am not 100% sure on.

According to the announcement https://wcsecure.weblink.com.au/pdf/VXR/02345600.pdf there are currently 387,413,780 shares on issue and 44,842,383 options on issue, with 55,344,826 shares being made available under the entitlement offer. But 55,344,826 is one seventh of 387,413,780. Presumable the 44,842,383 options are the $0.10 options that people have been exercising over the last few days, so I would assume potentially one seventh of these would need to be catered for should they all be exercised by the record date of May 20th.

Anyway, unless something way out of the blue happens between now and then, participating in this offer seems a no brainer.