It does appear to be strange that ITE should have a rights issue for 10% of its capital rather than a placement which would have been much faster and I assume cheaper.
They wouldn't have to pay UXC any interest of 12 % p.a. or any underwriting fee.
10% of its stock is less than the maximum 15% allowed under stock exchange rules without having to obtain shareholder approval.
Maybe, ITE couldn't find a broker that could place the stock ?
Does ITE have a house broker that promotes the stock and handle any capital raising issues ?
The whole rights issue situation is very odd and not very well explained.
ITE
i.t.& e limited
rights issue
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