re: rights stupid question whats the deal Depending on haspete's...

re: rights stupid question whats the deal Depending on haspete's understanding of what you said, that will have either meant something or nothing to him.

The ratio is 1:5 not 5:1.

For every 5 Cue shares you held just before trading started on 22 May (the ex-date), ie that you had at the close of trading on 19 May, you will receive at no cost to you 1 Cue Right (CUERB). What you do with it is up to you. You could sell it on the market for around 1 cent, or you could send 22 cents to the company with your rights application form and receive a Cue share in return which is currently selling for 21 cents, or you could do nothing, in which case after about 4 weeks, the rights will expire worthless to you, and Todd Petroleum will pay the 22 cents to the company and receive the share instead of you.

Given that Todd will be receiving 5% of the total value of all Cue rights exercised, and given that a fair proportion of Cue shareholders will pay the 22 cents, the leftovers that Todd has to buy for 22 cents, minus the 5% of the total raising that they receive from Cue, will probably mean that Todd pays a fairly low average price for the shares.

Shortfall Todd Cost
Percent per share
5 0.0000
10 0.1100
20 0.1650
30 0.1833
40 0.1925
50 0.1980
60 0.2017
70 0.2043
80 0.2063
90 0.2078
100 0.2090

Which means that even with a fairly high shortfall Todd could dump their Cue takeup on the market, at below 22 cents and still make a profit.

Maybe this explains why Cue is selling below 22.