re: what does this equate to Hi folksIm still trying to get my...

re: what does this equate to Hi folks

Im still trying to get my head around rights issues but the basics go something like this......

1) It all depends on the ratio of the issue ...in this case 1 right for every 2 shared held.

2)Todays close was 0.013 so you take 2 exisiting shares @ 0.013 = 0.026 PLUS the rights issue @ 0.005 =0.031 then divide this figure by 3 (which is 2 existing shares plus 1 right) =0.01 This is the theoretical vaue of each share *ex rights. Of course the final value will depend on the trading activity on each day.

3 ) The value of each right is calculated by subtracting the rights issue price of 0.005 from the ex rights theoretical share value of 0.01 = 0.005 What the value of the right colud be? who knows.

4) How to trade the rights ?? good question lol It all depends on the mood of the market just like normal trading. You can either take up the rights at 0.005 if you feel bullish about CCI or sell the rights if you think the price will not do anything exciting. We'll all know after next week how the market feels about it.

This is just my understanding of it and am keen to hear other explanations.

Go CCI