I think that if you own many shares and have the cash and are in Rogers inner circle ( better informed...... which wouldn't be hard ) it is a very enticing offer as it wipes out a layer of shareholders and offers you a large quantity of shares at a hugely discounted price. After the CR your percentage ownership would be higher due to the lack of participation by the poorer, less informed others.
That is why there has not been condemnation of Rogers by shareholders who own a larger parcel of shares as they know that this rights issue will make them much richer. We should have sold when he showed his true colours after the last CR and I think many did at that stage.
The rich are getting richer and always at the expense of others and in this case, one set of shareholders will benefit at the expense of another set who will be wiped out.
I didn't realise that there were rules against this sort of rights issue until I read "Spired" post and it makes sense as 5 for 2 non renounceable is devastating for small shareholders who cannot afford to participate as it wipes them out without any compensation and only an A...hole like Rogers would even think of doing such a thing. Also, sadly I think there are many like him who own shares in this company.
Our only hope is that ASIC come through and if they do we should give the story to the financial sector of a Melbourne newspaper and expose them for what they are
CTL Price at posting:
0.9¢ Sentiment: None Disclosure: Held
