You buy 4 of them and so qualify to buy one more via the rights issue for 5 cents.
Your outlay for 5 shares is then 36 cents on market + 5 cents via the rights issue. A total of 41 cents.
Hence your average price is 41 cents divided by 5 shares = 8.2 cents per share.
So tomorrow, all else being equal and going ex-rights RRS should trade at 8.2 cents. This is a drop of 0.8 cents compared to clsosing price today of say 9 cents - which represents a drop of 0.8 / 9 * 100 i.e. approx 9%.
I repeat, share price should drop 9 per cent only.
RRS Price at posting:
8.1¢ Sentiment: LT Buy Disclosure: Held
