News: IHL Incannex Healthcare Ltd Files To Withdraw U.S. IPO Plans, page-24

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connor109

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22/01/22

16:52

Post #: 59062604
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Originally posted by Badvet73: ↑

If I understand correctly (and I am very amateur in my investing, so please correct me where I go wrong), some companies have done this with what seems to be a 1 in 10 options for shares. Now this is all speculative as an example. This would give a potential for 10% more shares to be distributed but since we already own the shares, we wouldn't be seeing a dilution like would happen if a foreign company bought them. We would have to buy the options by a certain date at a set price. Let's say they are set at 75c and we all buy our options. I think we have 1.2 billion shares roughly. So 120 million at 75c gives $90 million into the coffers. Now of course it will be far less than this as not all will convert. But I believe their may be a 2nd round of options available at a higher price once you buy the original options. Now if we were $2 to $3 when this occurred unless you didn't have the cash then you'd be a mug not to buy them. So $70 to $90 million cash raised by doing this for the company. And we still own the same percentage of shares and we can now sell them for a tidy profit. Hopefully small amounts at a time to not crash our value!
Please correct me where I have gone wrong and also I have taken some fictitious numbers to do this but I think this sounds about right.
More than happy for someone to put me in the correct direction if I have totally stuffed this.

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I am just as amateur as you to be truthful and I think you have explained it very well. The fact that US investors would have to compete with Aus investors really excites me, not to mention the options. Hopefully IHL would mirror LKE. All the best everyone.

IHL Price at posting: 53.0¢ Sentiment: Buy Disclosure: Held
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