I remember reading about it some time ago and it is a plan to massively dilute the shareholdings by issuing as many new shares as they wish to existing holders at a significant discount.
So, say they get a takeover offer at $7 per share that they don't like and the shares are at $6.50. They could make a rights offer to holders of 3 for 1 at $5. That, 1) raises lots of dosh and 2) makes the company too expensive.
This is just from memory and I am open to corrections from anyone who can assist. My figures are an example only and in no way reflect anything EQN has suggested because they haven't suggested anything.
I remember reading about it some time ago and it is a plan to...
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Last
16.5¢ |
Change
-0.025(13.2%) |
Mkt cap ! $20.43M | |||
| Open | High | Low | Value | Volume |
| 18.0¢ | 18.5¢ | 16.5¢ | $38.39K | 221.2K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 31817 | 16.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 17.5¢ | 29629 | 1 |
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| Last trade - 16.10pm 13/11/2024 (20 minute delay) ? |
| EQN (ASX) Chart |