My understanding was that it is just the rights to the offer...

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SImon23

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15/03/24

12:08

Post #: 72903271
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Originally posted by GolferQld: ↑

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.

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My understanding was that it is just the rights to the offer that cannot be traded to someone else, once you have taken up and paid for the offer you will have normal shares and options. But i could be so very wrong...

I have emailed the company regarding this but they have not replied, so i have just now emailed Westar capital to see if they can/will shed any light on this.

Also i don't see anywhere where it gives an exercise price and date for the RR10 offer of 1 for 1 @ $0.0002. I had assumed they would be the same as the options issued under the rights issue, but i don't actually see that written down anywhere.

If I get an answer back i will let you know.

RR1 Price at posting: 0.4¢ Sentiment: Hold Disclosure: Held
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