At the time of the last Annual Report there were approximately 3,500 shareholders.
Given that $ 15,000.00 would purchase 1,000,000 shares the maximum possible number of shares that could be issued under the SPP is 3,500,000,000 which needs to be compared with the 675,000,000 shares currently on issue. If all shareholders took up the offer to the maximum the amount raised would be in excess of $52 million.
1 million shares roughly equates to No. 100 on the shareholders list so those below that number caqn maintain or increase their percentage holding. Those above will be "diluted" in percentage terms.
More than half the shareholders hold less than 100,000 shares and I cannot see many of them being willing to invest a further $15,000 in the company especially as the "discount" is currently less than 10%.
It seems to me that INL will need to rely on many on the Top 100 subscribing for the full amount allowed, and more, so as to avoid diluting their shareholding (in percentage terms).
The additional 15%, that INL will make available to sophisticated investors, equates to roughly 100 million shares and would only bring in $1.5million if fully subscribed. The 100 million shares will not go far in the Top 100 if they do wish to maintain their relative shareholding and I suppose it is possible that some will buy on the market.
I have yet to make up my mind and will wait for the offer letter and any subsequent news.
Best wishes,
TerryA
SDV Price at posting:
18.0¢ Sentiment: Hold Disclosure: Held
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