Below is part of a RR1 announcement in regards Rights Issue and Options Priority Offer. RR1 talks about in regards these options being - non-renounceable priority offers.
What Are Non-Renounceable Rights?
A non-renounceable rights issue refers to an offer issued by a corporation to shareholders to purchase more shares of the corporation (usually at a discount). Unlike a renounceable right, a non-renounceable right is not transferable, and therefore cannot be bought or sold.
If a person cannot sell these options after paying the exercisable fee what good are they except for giving the company more funds? If I am missing something here with the options offer maybe someone would like to advise.
DYOR IMO
19 February 2024 RIGHTS ISSUE AND OPTIONS PRIORITY OFFER
Reach Resources Limited (ASX: RR1 & RR1O) (“Reach” or “the Company”) is pleased to announce itsintention to undertake a non-renounceable rights issue of 1 fully paid ordinary share in the capital of the Company (“Share”) for every 3 Shares held by eligible shareholders at an issue price of $0.002 per Share (pre-consolidation) or $0.01 (post-consolidation), together with 1 free attaching option to acquire a Share (“Option”) for every 2 Shares subscribed for and issued, to raise up to approximately $2.14 million (“Rights Issue”).
Each Option issued under the Rights Issue will be exercisable within 3 years from the date of issue with an exercise price of $0.003 (pre-consolidation) or $0.015 (post consolidation) (“New Options”).
In addition to the Rights Issue, the Company will be offering eligible holders of the existing RR1O listed Options (“RR1O Options”) a non-renounceable priority offer to subscribe for 1 New Option for every 1 RR1O held at an issue price of $0.0002 (pre-consolidation) or $0.001 (post-consolidation) per New Option to raise up to approximately a further $0.26 million (“Priority Offer”). The issue of the New Options under the Priority Offer will be subject to shareholder approval.
RR1 Price at posting:
0.4¢ Sentiment: None Disclosure: Held
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