Renounceable Rights Issue??

rusq · 7 August 2009

Hi, bit of noob here still, but I have some Oroya Mining shares and they sent me out a letter about a pro rata renouncable rights issue of 2 new shares and 1 option for every 3 shares held, and I magically have 166,667 extra shares in my account that I haven't paid for.

Apparently I have until the 19th August to send in an application with payment for them. Thing is that I didn't get an application form and are just wondering what to do. If I ignore it, will they just disappear or will they hit me up for the cash later on.

confused
rusq

Bushman · 7 August 2009

rusq said:
Hi, bit of noob here still, but I have some Oroya Mining shares and they sent me out a letter about a pro rata renouncable rights issue of 2 new shares and 1 option for every 3 shares held, and I magically have 166,667 extra shares in my account that I haven't paid for.

Apparently I have until the 19th August to send in an application with payment for them. Thing is that I didn't get an application form and are just wondering what to do. If I ignore it, will they just disappear or will they hit me up for the cash later on.

confused
rusq

Give the Registar a call and make sure they have your correct details. It will be what is on your Chess details. From the website - Registrar:

Security Transfer Registrars Pty Ltd
770 Canning Highway
Applecross
Western Australia 6153

Check with your financial advisor, but what usually happens if you do nothing is that your right lapses and it then becomes the responsibility of the under-writer (who will sell it our stump up the cash). You will not have to stump up cash but you will obviously have your current holding diluted by the rights issue.

Note that you can normall sell your right on the ASX and get some value for it.

rusq · 7 August 2009

thanks for that. I'll give them a call.

jono1887 · 7 August 2009

rusq said:
Hi, bit of noob here still, but I have some Oroya Mining shares and they sent me out a letter about a pro rata renouncable rights issue of 2 new shares and 1 option for every 3 shares held, and I magically have 166,667 extra shares in my account that I haven't paid for.

Apparently I have until the 19th August to send in an application with payment for them. Thing is that I didn't get an application form and are just wondering what to do. If I ignore it, will they just disappear or will they hit me up for the cash later on.

confused
rusq

I dont think you're meant to magically recieve the shares until you fill out the form and pay for them

:

rusq · 8 August 2009

jono1887 said:
I dont think you're meant to magically recieve the shares until you fill out the form and pay for them :

Well I've definitely got them, registered to me and available to trade the rights until the 21st Aug apparently. I called the registar and some young women with better things to do hung up on me after telling me the application form was in the mail.

There's also a rights issue from Lakes Oil but I haven't magically received any shares from them, need to apply first as you said.

JimBob · 8 August 2009

I think what you may have in your account is 166,667 rights shares, which give you the right to buy 2 new shares and 1 option (if im reading the announcement correctly). You can sell these rights on the ASX up to the closing date. If you still own the rights at the closing date, you can pay to get the shares and option or you can do nothing. But if you arent planning on buying the shares and option, you should probably sell the rights on the market.

rusq · 8 August 2009

Thanks JimBob.
That makes sense. For the measly cash they are trading the rights at, I might just purchase them and see what happens in the future. Can't get much lower unless they fold...

Renounceable Rights Issue??

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