I’ve noticed that most rights issues say that shortfall...

I’ve noticed that most rights issues say that shortfall allocation is at the discretion of directors and hence I don’t bother applying for them.

However, the CXZ issue specifically stated in their prospectus that shortfall would first be allocated to CXZ shareholders then MMH shareholders then the underwriter. For this reason I invested lots of money into it as the prospectus rules make it pretty clear that it’s not at the discretion of the company.

Given the major shareholder, MMH, did not apply for the rights issue, there is at least $480k in shortfall available to be allocated (assuming all other shareholders applied!)

Therefore, shareholders who applied for shortfall must receive at least some shortfall according to the rules of the prospectus. And it’s definitely not possible for shareholders of MMH to receive any shortfall shares unless CXZ shareholders receive all their shortfall application.

Therefore we should definitely receive some of the shortfall…