JPR - Jupiter Energy
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Clarification regarding the exercise price of listed October 2006 options
The Board of Jupiter Energy Limited (ASX: JPR) would like to provide the market with some
clarification regarding the $0.20 exercise price of the existing JPR 31 October 2006 listed options
(October 2006 options).
As option holders are aware, the Company will be seeking shareholder approval for an in specie
distribution of shares in relation to the spin off of its biodiesel subsidiary from JPR as it prepares
for a public listing of Jupiter Biofuels Limited.
Holders of shares in JPR as at the nominated record date will be entitled to an allocation of
Jupiter Biofuels Limited shares and as a result, all option holders including those holding October
2006 options will have to decide prior to the record date whether they wish to exercise any
options they may hold and therefore participate in the in specie distribution.
The clarification is in relation to whether there will be a reduction in the exercise price of any
unexercised October 2006 options post the in specie distribution having taken place. The
Company has sought advice from its accountants, lawyers and the Australian Stock Exchange
Limited (ASX) and has received written advice that confirms that the exercise price of the
October 2006 options post the in specie distribution will remain at the existing exercise price
$0.20.
In accordance with ASX Listing Rule 7.22, the exercise price of each option must be reduced by
the same amount as the amount returned in relation to each ordinary security. The amount
returned is based on the book value of Jupiter Biofuels Limited in the accounts of the Company.
Accordingly, the exercise price of the options will remain the same.
If shareholders have any questions relating to this matter, please contact JPR Executive Director
Geoff Gander on 0417 914 137.
should clear out the weak hands
nice sp increase today
The Board of Jupiter Energy Limited (ASX: JPR) would like to provide the market with some
clarification regarding the $0.20 exercise price of the existing JPR 31 October 2006 listed options
(October 2006 options).
As option holders are aware, the Company will be seeking shareholder approval for an in specie
distribution of shares in relation to the spin off of its biodiesel subsidiary from JPR as it prepares
for a public listing of Jupiter Biofuels Limited.
Holders of shares in JPR as at the nominated record date will be entitled to an allocation of
Jupiter Biofuels Limited shares and as a result, all option holders including those holding October
2006 options will have to decide prior to the record date whether they wish to exercise any
options they may hold and therefore participate in the in specie distribution.
The clarification is in relation to whether there will be a reduction in the exercise price of any
unexercised October 2006 options post the in specie distribution having taken place. The
Company has sought advice from its accountants, lawyers and the Australian Stock Exchange
Limited (ASX) and has received written advice that confirms that the exercise price of the
October 2006 options post the in specie distribution will remain at the existing exercise price
$0.20.
In accordance with ASX Listing Rule 7.22, the exercise price of each option must be reduced by
the same amount as the amount returned in relation to each ordinary security. The amount
returned is based on the book value of Jupiter Biofuels Limited in the accounts of the Company.
Accordingly, the exercise price of the options will remain the same.
If shareholders have any questions relating to this matter, please contact JPR Executive Director
Geoff Gander on 0417 914 137.
should clear out the weak hands
nice sp increase today
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is now a good time to buy in?
Call me sceptical, but does this sound too good to be true??
Call me sceptical, but does this sound too good to be true??
the lodgement of the prospectus was officially announced after the close of trade today. This was the confirmation that everyone was yearning for. The share price will see a nice surge on Monday and will remain strong until the record date of the in specie. I still see value below 25c
Lodgment of Jupiter Biofuels Prospectus
The Board of Jupiter Energy Limited (ASX: JPR) (Jupiter Energy) is pleased to advise
shareholders that Jupiter Energy's 100% owned subsidiary, Jupiter Biofuels Limited
(Jupiter Biofuels), has today lodged a Prospectus with ASIC and will be seeking to raise
A$75 million via the issue of 150 million shares at an issue price of $0.50 per share. The
Prospectus is now available for review at www.jupiterbiofuels.com.au
The proposed $75m fund raising is an integral part of the process of spinning off Jupiter
Biofuels from Jupiter Energy via an In-specie distribution and listing Jupiter Biofuels as a
stand alone entity on the ASX. The Prospectus will raise the required capital to fund the
construction of a 250,000 Tonnes Per Annum biodiesel plant in Kuantan, Malaysia and
provide the necessary working capital to support the organisation until the facility goes
into planned production in April 2008.
Jupiter Energy's shareholders will be called to consider and vote on the proposed In-
specie distribution as part of the upcoming Jupiter Energy Annual General Meeting. For
this purpose, a Notice of Meeting will be sent to Jupiter Energy shareholders and this will
contain all information required by shareholders to form an opinion on how to vote. The
Notice of Meeting is expected to be dispatched to all Jupiter Energy shareholders, with a
copy of the Prospectus, in early October and the Annual General Meeting will be held on
10 November 2006. All Jupiter Energy shareholders, as at the nominated Record Date of
17 November 2006, will be entitled to receive shares in Jupiter Biofuels on an
approximate conversion rate of 1 for 2 (that is to say, a shareholder with 10,000 Jupiter
Energy shares as at the Record Date would receive 5,000 Jupiter Biofuels shares at no
cost). The exact conversion rate used will be based on a specific mathematical formula
which is:
Conversion Rate = JPR Shares divided by 80,000,000
--------------------------------------------------------------------------------
where JPR Shares is the number of fully paid ordinary shares held within Jupiter Energy
as at the Record Date and 80,000,000 is the total number of Jupiter Biofuels shares to be
distributed to Jupiter Energy shareholders via the In-specie distribution.
The offer of Jupiter Biofuels shares will be made pursuant to the Prospectus and anyone
wishing to acquire Jupiter Biofuels shares under the public offer will need to complete
the application form that will be in the Prospectus.
For the avoidance of doubt, if Jupiter Energy shareholders approve the In-specie
distribution of Jupiter Biofuels shares at the Annual General Meeting, shareholders will
not be required to complete an application form in order to receive their allocation of
Jupiter Biofuels shares. Shareholders wishing to apply to acquire additional Jupiter
Biofuels shares under the public offer will need to complete the application form that will
be in the Prospectus.
The following indicative timetable outlines the important dates that Jupiter Energy
shareholders and option holders need to be aware of. These dates are indicative only and
may change.
INDICATIVE TIMETABLE
Lodgement of Jupiter Biofuels Limited Prospectus with the 22 September 2006
ASIC.
Exposure Period Ends. 29 September 2006
Availability of Printed Prospectus. 04 October 2006
Despatch of the Jupiter Energy Notice of Annual General 05 October2006
Meeting that includes a resolution to approve the In-specie
distribution. A copy of the Jupiter Biofuels Prospectus will
be attached.
Despatch of a letter to all Jupiter Energy option holders 13 October 2006
outlining the process by which options should be exercised
with an appropriate exercise application form attached.
Recommended date by which Jupiter Energy option 20 October 2006
holders should submit application monies for the exercise
of all Jupiter Energy options (8, 12 and 20 cent options). *
Expiry date of listed 20 cent Jupiter Energy options. 31 October 2006
Annual General Meeting of Jupiter Energy Shareholders. 10 November 2006
Record Date on which the In-specie distribution of Jupiter 5.00pm WST on 17 November 2006
Biofuels shares will be based.
Closing Date of Jupiter Biofuels Limited Prospectus ** 5.00pm WST on 20 November 2006
Despatch of Holding Statements. 23 November 2006
--------------------------------------------------------------------------------
Trading of Jupiter Biofuels Shares on ASX expected to 30 November 2006
commence.
The Board of Jupiter Energy Limited (ASX: JPR) (Jupiter Energy) is pleased to advise
shareholders that Jupiter Energy's 100% owned subsidiary, Jupiter Biofuels Limited
(Jupiter Biofuels), has today lodged a Prospectus with ASIC and will be seeking to raise
A$75 million via the issue of 150 million shares at an issue price of $0.50 per share. The
Prospectus is now available for review at www.jupiterbiofuels.com.au
The proposed $75m fund raising is an integral part of the process of spinning off Jupiter
Biofuels from Jupiter Energy via an In-specie distribution and listing Jupiter Biofuels as a
stand alone entity on the ASX. The Prospectus will raise the required capital to fund the
construction of a 250,000 Tonnes Per Annum biodiesel plant in Kuantan, Malaysia and
provide the necessary working capital to support the organisation until the facility goes
into planned production in April 2008.
Jupiter Energy's shareholders will be called to consider and vote on the proposed In-
specie distribution as part of the upcoming Jupiter Energy Annual General Meeting. For
this purpose, a Notice of Meeting will be sent to Jupiter Energy shareholders and this will
contain all information required by shareholders to form an opinion on how to vote. The
Notice of Meeting is expected to be dispatched to all Jupiter Energy shareholders, with a
copy of the Prospectus, in early October and the Annual General Meeting will be held on
10 November 2006. All Jupiter Energy shareholders, as at the nominated Record Date of
17 November 2006, will be entitled to receive shares in Jupiter Biofuels on an
approximate conversion rate of 1 for 2 (that is to say, a shareholder with 10,000 Jupiter
Energy shares as at the Record Date would receive 5,000 Jupiter Biofuels shares at no
cost). The exact conversion rate used will be based on a specific mathematical formula
which is:
Conversion Rate = JPR Shares divided by 80,000,000
--------------------------------------------------------------------------------
where JPR Shares is the number of fully paid ordinary shares held within Jupiter Energy
as at the Record Date and 80,000,000 is the total number of Jupiter Biofuels shares to be
distributed to Jupiter Energy shareholders via the In-specie distribution.
The offer of Jupiter Biofuels shares will be made pursuant to the Prospectus and anyone
wishing to acquire Jupiter Biofuels shares under the public offer will need to complete
the application form that will be in the Prospectus.
For the avoidance of doubt, if Jupiter Energy shareholders approve the In-specie
distribution of Jupiter Biofuels shares at the Annual General Meeting, shareholders will
not be required to complete an application form in order to receive their allocation of
Jupiter Biofuels shares. Shareholders wishing to apply to acquire additional Jupiter
Biofuels shares under the public offer will need to complete the application form that will
be in the Prospectus.
The following indicative timetable outlines the important dates that Jupiter Energy
shareholders and option holders need to be aware of. These dates are indicative only and
may change.
INDICATIVE TIMETABLE
Lodgement of Jupiter Biofuels Limited Prospectus with the 22 September 2006
ASIC.
Exposure Period Ends. 29 September 2006
Availability of Printed Prospectus. 04 October 2006
Despatch of the Jupiter Energy Notice of Annual General 05 October2006
Meeting that includes a resolution to approve the In-specie
distribution. A copy of the Jupiter Biofuels Prospectus will
be attached.
Despatch of a letter to all Jupiter Energy option holders 13 October 2006
outlining the process by which options should be exercised
with an appropriate exercise application form attached.
Recommended date by which Jupiter Energy option 20 October 2006
holders should submit application monies for the exercise
of all Jupiter Energy options (8, 12 and 20 cent options). *
Expiry date of listed 20 cent Jupiter Energy options. 31 October 2006
Annual General Meeting of Jupiter Energy Shareholders. 10 November 2006
Record Date on which the In-specie distribution of Jupiter 5.00pm WST on 17 November 2006
Biofuels shares will be based.
Closing Date of Jupiter Biofuels Limited Prospectus ** 5.00pm WST on 20 November 2006
Despatch of Holding Statements. 23 November 2006
--------------------------------------------------------------------------------
Trading of Jupiter Biofuels Shares on ASX expected to 30 November 2006
commence.
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It's a brilliant prospectus. 160 pages and beautifully put together. Can see where the time went!
OK - thoughts - anyone with any sense at this stage wanting into the IPO would be buying JPR under 25c instead of applying through the prospectus.
(or maybe uner 35c - as there is still the value of the JPR share left)
The fact that it is now 1 for 2 instead of 1 for 1.87ish - their last estimate, means that they must now expect all the options to be converted (and let's face it, why WOULDN'T you convert them!)
We may get a situation when the share price hits over 30c - especially if the IPO is over subscribed, which I expect to be announced fairly quickly, that the cheapest entry to the IPO may well be through buying JPRO and converting. If at any stage the JPRO fall more than 20c behind the heads, that is where the Bio Fuels people will want to enter.
Not only do you get the free hare, but you still have the inhgerent value of whatever asserts are added to the JPR shell.
Certainly a no brainer - and as more people see it, the price will only get higher.
Cheers
OK - thoughts - anyone with any sense at this stage wanting into the IPO would be buying JPR under 25c instead of applying through the prospectus.
(or maybe uner 35c - as there is still the value of the JPR share left)
The fact that it is now 1 for 2 instead of 1 for 1.87ish - their last estimate, means that they must now expect all the options to be converted (and let's face it, why WOULDN'T you convert them!)
We may get a situation when the share price hits over 30c - especially if the IPO is over subscribed, which I expect to be announced fairly quickly, that the cheapest entry to the IPO may well be through buying JPRO and converting. If at any stage the JPRO fall more than 20c behind the heads, that is where the Bio Fuels people will want to enter.
Not only do you get the free hare, but you still have the inhgerent value of whatever asserts are added to the JPR shell.
Certainly a no brainer - and as more people see it, the price will only get higher.
Cheers
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ok this is a newbie question - still learning here!
...but how do they raise money by giving free in specie shares to JPR shareholders??
ok, if i'm not mistaken, if you own JPR shares on Nov 11th then they will give you 1 bioshare share for every 2 JPR shares you own correct? And you get to keep the JPR shares as well? And if these are worth 0.50 each, then even if the JPR share bottoms out, you still have the biofuel share value?
Am i missing something?
...but how do they raise money by giving free in specie shares to JPR shareholders??
ok, if i'm not mistaken, if you own JPR shares on Nov 11th then they will give you 1 bioshare share for every 2 JPR shares you own correct? And you get to keep the JPR shares as well? And if these are worth 0.50 each, then even if the JPR share bottoms out, you still have the biofuel share value?
Am i missing something?
its as simple as that - there is no underlying deception, I promise!
the closer we get to the record date - the higher the full price shares will go in anticipation of the in specie distribution. u can either sell at the peak, or hold and recieve ur allocated shares.
either way u should make a tidy profit
on Monday these are gonna rise as a result of the prospectus - buy into any weakness
the closer we get to the record date - the higher the full price shares will go in anticipation of the in specie distribution. u can either sell at the peak, or hold and recieve ur allocated shares.
either way u should make a tidy profit
on Monday these are gonna rise as a result of the prospectus - buy into any weakness
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Maverick, it's a bonus for JPR holders - and 80 million shares will be given in this way into the new IPO. Many are long term investors in JPR.
Another $75million will be raised with the issue of 150 million shares via the prospectus application at 50c each.
As you can imagine, this instantly gives value of 25c to a JPR shares for the IPO alone, plus the value of the JPR share itself, means we should see trading up around the 30c mark plus fairly quickly.
If the IPO closes early over subscribed, (which I believe it will ) the only entry in will be via JPR and JPRO (converted only) all meaning the float is likely to open well above 50c - giving even more premium value to JPR in the next few weeks.
Also, a Pet Ventures deal is forecast to be backed into the JPR shell, which cements a brilliant all round deal.
Becoming the no brainer of the year imo..
Another $75million will be raised with the issue of 150 million shares via the prospectus application at 50c each.
As you can imagine, this instantly gives value of 25c to a JPR shares for the IPO alone, plus the value of the JPR share itself, means we should see trading up around the 30c mark plus fairly quickly.
If the IPO closes early over subscribed, (which I believe it will ) the only entry in will be via JPR and JPRO (converted only) all meaning the float is likely to open well above 50c - giving even more premium value to JPR in the next few weeks.
Also, a Pet Ventures deal is forecast to be backed into the JPR shell, which cements a brilliant all round deal.
Becoming the no brainer of the year imo..
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they are gonna rocket, got in this morning, up about 10% higher than close last week! Should see 30cps in the next few weeks
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Some sensible posts from 'the other place'
Mine and t4p's:
It's a brilliant prospectus. 160 pages and beautifully put together. Can see where the time went!
OK - thoughts - anyone with any sense at this stage wanting into the IPO would be buying JPR under 25c instead of applying through the prospectus.
(or maybe uner 35c - as there is still the value of the JPR share left)
The fact that it is now 1 for 2 instead of 1 for 1.87ish - their last estimate, means that they must now expect all the options to be converted (and let's face it, why WOULDN'T you convert them!)
We may get a situation when the share price hits over 30c - especially if the IPO is over subscribed, which I expect to be announced fairly quickly, that the cheapest entry to the IPO could well be through buying JPRO and converting. If at any stage the JPRO fall more than 20c behind the heads, that is where the Bio Fuels people will want to enter. For that reason, up to October 20th - I would imagine JPRO will stay almost precisely 20c behind the heads. May see some premium initially, but it'll be close.
Not only do you get the free share, but you still have the inhgerent value of whatever assets are added to the JPR shell.
We're in for a fun and frantic 4 weeks - and then the REAL fun begins!!
Certainly a no brainer - and as more people see it, the price will only get higher.
Cheers
Trade4profit posts:
The IPO is very much as good as I expected...which by the way, was always likely to be above what many others were expecting.
lol...and what a weekend to release it...nicely timed with Branson's $1.5b commitment to this very industry!
Suffice to say I am pretty happy!
The key here is the conservative nature of all the variables...a brilliant move in my mind, that lets those informed among us paint their own picture...fill in the gaps and buy according to their own value models.
Brilliant!
The alternative is to overstate everything as many previous IPO's have...then leave the market in the mindset of discounting for this and discounting for that, which results in a negative overall assessment.
i would be surprised not to see serious buying ensue...but while the IPO remains open, we may not see too much "exhuberance" eventuate...I expect we will not see that until the IPO becomes fully subscribed...and JPR becomes an oversubscriptions vehicle!
So much to like about this prospectus at every level.
Notice how much they expect to get for the crude Glycerin (byproduct)?
Nothing...zip...nada!
This is yet another inbuilt safety margin...and is in stark contrast to some of the other IPO's, where the Glycerin by-product becomes a key element of the value model.
Current spot "Crude" Glycerin prices are in the US$50 range per tonne (and falling)...10 tonnes of biodiesel produces roughly 1 tonne of crude Glycerin. There is a glut in crude glycerin at the moment...so assuming a zero return will be viewed as a good move.
Some of the "competitors" are effectively relying on the glycerin by-product to tip their profitability over the line!
Interestingly however, "refined" Glycerin is a different beast all together and even in an oversupply scenario, should see an absolute floor around US$350 per tonne due to industry parameters (ie, becomes a viable industrial product at this level for alternative applications)...but has recently sold near US$900 per tonne.
I believe JPR will eventually look seriously at the refined path for their by-product?
Amazing to think JPR's palm oil Biodiesel can land in the EU for around $250 cheaper per tonne than their locally produced product...what an advantage for Jupter Biofuels and clearly the reason behind the 5 year offtake agreement with such a highly respected energy group.
Really, it is hard to see this thing not make money!
And another post:
May not run too much this week...after all, we are still in the "viewing" period.
Some will however move earlier than others and pick up on the deal...and as you say, view anything under 25c in JPR as a cheap entry, clearly however, any doubts about the success of the IPO may manifest in buying interest for JPR during the viewing period and indeed may continue until uptake interest starts to leak out.
It is hard to imgine however, anyone happy to commit to the IPO at 50c, not deciding to also (or alternatively) take up stock in JPR at current prices.
Remembering of course...JPR at 26c (should be higher) only accounts for the IPO spin off at par value...we have the residual JPR shell value to add to this, ranging anything from 4 - 12c, depending on your view. In any account, with over 7c per share cash at hand pre record date, it is hard to imagine the price falling below this for any decent period of time.
Shares = 116,034,523
Options (20c) = 22,338,004
Options (unlisted (12c) = 8,250,000
Options (unlisted 8c) = 4,878,000
Directors options (transferred out of JPR) = 0
Total (fully diluted) = 151,409,527
80,000,000 divided by 151,409,527 = .5284
I suggest the "approximate" 1:2 ratio as suggested in the prospectus is simply a reflection of the "conservative" view of the prospectus!
IPO (par value) value in JPR: .5284 x .50 = 26.4c
My personal view is a listing premium on the IPO which should see 60+ on the IPO and a shell value for JPR of at least 7c (cash backing)
Using these figures, we get...
.5284 (ratio) x .60 (IPO) + 7c (JPR shell)= 38.7c JPR inherent value.
Things to watch out for...
1. IPO closing early (add 3c to current JPR price)
2. Large into's/funds taking a position (add 5c to current JPR price)
3. Early news of energy asset (add 5-10c to current JPR price)
4. Rising Oil price (add 1c to JPR for every $1 rise)
5. Continued positive Biofuels coverage (add ?)
6. Performance of peers (add ?)
If all the abve fell into place perfectly, JPR prices pre-record date of 60c would not surprise me...although I would not be holding my breath.
Of course, negative outcomes in each of these may well result in a subtraction of value from the current JPR value equation.
Anyway...in making a balanced assessment here, I see far more likelyhood of upside and not downside on my figures...I guess time will tell.
Cheers!
Back to me:
Trade, -
LOL!! 38c was my prediction for *****, and it's your conservative figure!
I actually believe that we'll see a sharp run of early smart money into JPR this week as people realise that at this price it's a massive discount to the IPO plus a bonus of the shell value (which should retain a fair value as their is some JPR ownership in JBF plus cash value and asset to most likely be 'inserted')
Certainly see 30c some time fairly soon on the cards.
Mine and t4p's:
It's a brilliant prospectus. 160 pages and beautifully put together. Can see where the time went!
OK - thoughts - anyone with any sense at this stage wanting into the IPO would be buying JPR under 25c instead of applying through the prospectus.
(or maybe uner 35c - as there is still the value of the JPR share left)
The fact that it is now 1 for 2 instead of 1 for 1.87ish - their last estimate, means that they must now expect all the options to be converted (and let's face it, why WOULDN'T you convert them!)
We may get a situation when the share price hits over 30c - especially if the IPO is over subscribed, which I expect to be announced fairly quickly, that the cheapest entry to the IPO could well be through buying JPRO and converting. If at any stage the JPRO fall more than 20c behind the heads, that is where the Bio Fuels people will want to enter. For that reason, up to October 20th - I would imagine JPRO will stay almost precisely 20c behind the heads. May see some premium initially, but it'll be close.
Not only do you get the free share, but you still have the inhgerent value of whatever assets are added to the JPR shell.
We're in for a fun and frantic 4 weeks - and then the REAL fun begins!!
Certainly a no brainer - and as more people see it, the price will only get higher.
Cheers
Trade4profit posts:
The IPO is very much as good as I expected...which by the way, was always likely to be above what many others were expecting.
lol...and what a weekend to release it...nicely timed with Branson's $1.5b commitment to this very industry!
Suffice to say I am pretty happy!
The key here is the conservative nature of all the variables...a brilliant move in my mind, that lets those informed among us paint their own picture...fill in the gaps and buy according to their own value models.
Brilliant!
The alternative is to overstate everything as many previous IPO's have...then leave the market in the mindset of discounting for this and discounting for that, which results in a negative overall assessment.
i would be surprised not to see serious buying ensue...but while the IPO remains open, we may not see too much "exhuberance" eventuate...I expect we will not see that until the IPO becomes fully subscribed...and JPR becomes an oversubscriptions vehicle!
So much to like about this prospectus at every level.
Notice how much they expect to get for the crude Glycerin (byproduct)?
Nothing...zip...nada!
This is yet another inbuilt safety margin...and is in stark contrast to some of the other IPO's, where the Glycerin by-product becomes a key element of the value model.
Current spot "Crude" Glycerin prices are in the US$50 range per tonne (and falling)...10 tonnes of biodiesel produces roughly 1 tonne of crude Glycerin. There is a glut in crude glycerin at the moment...so assuming a zero return will be viewed as a good move.
Some of the "competitors" are effectively relying on the glycerin by-product to tip their profitability over the line!
Interestingly however, "refined" Glycerin is a different beast all together and even in an oversupply scenario, should see an absolute floor around US$350 per tonne due to industry parameters (ie, becomes a viable industrial product at this level for alternative applications)...but has recently sold near US$900 per tonne.
I believe JPR will eventually look seriously at the refined path for their by-product?
Amazing to think JPR's palm oil Biodiesel can land in the EU for around $250 cheaper per tonne than their locally produced product...what an advantage for Jupter Biofuels and clearly the reason behind the 5 year offtake agreement with such a highly respected energy group.
Really, it is hard to see this thing not make money!
And another post:
May not run too much this week...after all, we are still in the "viewing" period.
Some will however move earlier than others and pick up on the deal...and as you say, view anything under 25c in JPR as a cheap entry, clearly however, any doubts about the success of the IPO may manifest in buying interest for JPR during the viewing period and indeed may continue until uptake interest starts to leak out.
It is hard to imgine however, anyone happy to commit to the IPO at 50c, not deciding to also (or alternatively) take up stock in JPR at current prices.
Remembering of course...JPR at 26c (should be higher) only accounts for the IPO spin off at par value...we have the residual JPR shell value to add to this, ranging anything from 4 - 12c, depending on your view. In any account, with over 7c per share cash at hand pre record date, it is hard to imagine the price falling below this for any decent period of time.
Shares = 116,034,523
Options (20c) = 22,338,004
Options (unlisted (12c) = 8,250,000
Options (unlisted 8c) = 4,878,000
Directors options (transferred out of JPR) = 0
Total (fully diluted) = 151,409,527
80,000,000 divided by 151,409,527 = .5284
I suggest the "approximate" 1:2 ratio as suggested in the prospectus is simply a reflection of the "conservative" view of the prospectus!
IPO (par value) value in JPR: .5284 x .50 = 26.4c
My personal view is a listing premium on the IPO which should see 60+ on the IPO and a shell value for JPR of at least 7c (cash backing)
Using these figures, we get...
.5284 (ratio) x .60 (IPO) + 7c (JPR shell)= 38.7c JPR inherent value.
Things to watch out for...
1. IPO closing early (add 3c to current JPR price)
2. Large into's/funds taking a position (add 5c to current JPR price)
3. Early news of energy asset (add 5-10c to current JPR price)
4. Rising Oil price (add 1c to JPR for every $1 rise)
5. Continued positive Biofuels coverage (add ?)
6. Performance of peers (add ?)
If all the abve fell into place perfectly, JPR prices pre-record date of 60c would not surprise me...although I would not be holding my breath.
Of course, negative outcomes in each of these may well result in a subtraction of value from the current JPR value equation.
Anyway...in making a balanced assessment here, I see far more likelyhood of upside and not downside on my figures...I guess time will tell.
Cheers!
Back to me:
Trade, -
LOL!! 38c was my prediction for *****, and it's your conservative figure!
I actually believe that we'll see a sharp run of early smart money into JPR this week as people realise that at this price it's a massive discount to the IPO plus a bonus of the shell value (which should retain a fair value as their is some JPR ownership in JBF plus cash value and asset to most likely be 'inserted')
Certainly see 30c some time fairly soon on the cards.
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just to confirm, do you only need to hold JPR on the close of 17th Nov right to get your biofuel share allocation? I mean you can but the day before and sell the day after and still get the biofuel species? Do you think we will need to make an application, or will it automatically get approved?
According to my conservative calc's it would more than likely be better to hold throught the record date and cash in on the biofuel species and take a hit on the JPR's
According to my conservative calc's it would more than likely be better to hold throught the record date and cash in on the biofuel species and take a hit on the JPR's
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Maverick - use ethe 3 day prior AT LEAST, as your safe holding date.
Don't forget though, they could be trading over 40c by then!!
You will automatically be granted the JBF shares if you are a holder - they have put that in writing in the ann.
INDICATIVE TIMETABLE
Lodgement of Jupiter Biofuels Limited Prospectus with the ASIC.
22 September 2006
Exposure Period Ends.
29 September 2006
Availability of Printed Prospectus.
04 October 2006
Despatch of the Jupiter Energy Notice of Annual General Meeting that includes a resolution to approve the In-specie distribution. A copy of the Jupiter Biofuels Prospectus will be attached.
05 October2006
Despatch of a letter to all Jupiter Energy option holders outlining the process by which options should be exercised with an appropriate exercise application form attached.
13 October 2006
Recommended date by which Jupiter Energy option holders should submit application monies for the exercise of all Jupiter Energy options (8, 12 and 20 cent options). *
20 October 2006
Expiry date of listed 20 cent Jupiter Energy options.
31 October 2006
Annual General Meeting of Jupiter Energy Shareholders.
10 November 2006
Record Date on which the In-specie distribution of Jupiter Biofuels shares will be based.
5.00pm WST on 17 November 2006
Closing Date of Jupiter Biofuels Limited Prospectus **
5.00pm WST on 20 November 2006
Despatch of Holding Statements.
23 November 2006
Trading of Jupiter Biofuels Shares on ASX expected to commence.
30 November 2006
* The Board of Jupiter Energy recommends that option holders send application forms and attached cheque for the exercise of options to the share registry by 20 October 2006 to avoid any potential for options not to be converted by the Record Date or, in the case of the listed $0.20 options, the options to expire.
** This date may change at the discretion of the Jupiter Biofuels Limited Board.
Don't forget though, they could be trading over 40c by then!!
You will automatically be granted the JBF shares if you are a holder - they have put that in writing in the ann.
INDICATIVE TIMETABLE
Lodgement of Jupiter Biofuels Limited Prospectus with the ASIC.
22 September 2006
Exposure Period Ends.
29 September 2006
Availability of Printed Prospectus.
04 October 2006
Despatch of the Jupiter Energy Notice of Annual General Meeting that includes a resolution to approve the In-specie distribution. A copy of the Jupiter Biofuels Prospectus will be attached.
05 October2006
Despatch of a letter to all Jupiter Energy option holders outlining the process by which options should be exercised with an appropriate exercise application form attached.
13 October 2006
Recommended date by which Jupiter Energy option holders should submit application monies for the exercise of all Jupiter Energy options (8, 12 and 20 cent options). *
20 October 2006
Expiry date of listed 20 cent Jupiter Energy options.
31 October 2006
Annual General Meeting of Jupiter Energy Shareholders.
10 November 2006
Record Date on which the In-specie distribution of Jupiter Biofuels shares will be based.
5.00pm WST on 17 November 2006
Closing Date of Jupiter Biofuels Limited Prospectus **
5.00pm WST on 20 November 2006
Despatch of Holding Statements.
23 November 2006
Trading of Jupiter Biofuels Shares on ASX expected to commence.
30 November 2006
* The Board of Jupiter Energy recommends that option holders send application forms and attached cheque for the exercise of options to the share registry by 20 October 2006 to avoid any potential for options not to be converted by the Record Date or, in the case of the listed $0.20 options, the options to expire.
** This date may change at the discretion of the Jupiter Biofuels Limited Board.
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well i got in today, so all assured. This might be a silly question, but will the JBF shares just mysteriously pop up in my online trading account one day late Nov??
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Yes! (shares will appear)
Brilliant isn't it!
Brilliant isn't it!
