SMLL RIGHT ISSUE & WARRANTS

capitalgain · 1 SMLL RIGHT ISSUE & WARRANTS Tue Sep 27, 2011 11:01 pm

capitalgain

Equity Analytic

Posts : 20
Equity Stars : 4819
Reputation : 4
Join date : 2011-05-07

Hey forum members ,

With SMLL right issue assuming price of a share is 50 at XR .....

then (50*5+15*4)/9 = 34.50............

Does Warrant holders get rights ???
If not the adjusted price being 34.50 for SMLL.N0000 ... the warrant at a fair price will be 4.50 right ( with conversion cost of 30 ) .......

If i am correct as above then the warrant is highly overvalued it seems ........
Please share your views and correct me if i am wrong as I am a new member !!!!

kiwi · 2 Re: SMLL RIGHT ISSUE & WARRANTS Wed Sep 28, 2011 2:47 am

kiwi

Senior Equity Analytic

Posts : 88
Equity Stars : 4888
Reputation : 16
Join date : 2011-05-03
Location : Hobbiton, Middle Earth

Capitalgain, I think you have confused Peoples Merchant PLC rights issue with SMLL which is Peoples Leasing Finance which has not made a rights issues announcement. SMLL had a rights issue with Warrants attached earlier this year.