323 - assuming you hold ordinary shares in KOG before the...

323 - assuming you hold ordinary shares in KOG before the ex-rights date of 2 Dec 10 at say 0.8cents or above, and you take up all your 4 rights at 0.1cents each, then you total cost will be 1.2 cents for a total of 5 ordinary shares giving you an average price of 0.24cents for each share (post rights issue). Therefore, I don't think the shares will trade at 0.1 cents (ie. at the issue price) unless people are prepared to take an immediate loss. I believe the share price will most likely trade around 0.2cents and 0.3cents (post the rights issue). Please see my previous post- if you participate in the rights issue you will not be diluted and there is effectively no change to your position - it is only the ones who don't participate who will lose out (ie. be diluted) of this rights issue. Good luck to all.