When bosses give lengthy media interviews, it usually means something is up (if there’s bad news brewing they usually avoid such interviews). Look at the recent ones by censof’s boss.
Easy money: If you have Ordinary shares, sell them then buy PA. PA should trade at premium to Ordinary as it is a Preference Share with 3% dividend and convertible to ordinary at 1 : 1 Or just buy PA as it should trade at a premium to ordinary.
Warrant B exercise price is 16 sen. Say WB now at 12 sen then your cost of WZ Ordinary will be 28 sen. Far higher than WZ! current trading price of about 20 sen
Can convert directly one to one without any additional cash.
The conversion price of the ICPS shall be an amount equivalent to the issue price of the ICPS. Each ICPS is convertible into 1 new Share (“Conversion Ratio”). For the avoidance of doubt, no additional cash payment is required for such conversion of the ICPS by the ICPS holders.
Nothing more to pay for PA conversion, not 11 sen which you have paid for the PA. Just convert PA to WZ1 Ordinary 1 for 1 without paying additional cash. But PA should have higher value as it has 3% preferential dividend
The CEO is now buying WA ! He perhaps rightly prefer to buy PA as exposure to equity instead buying directly the mother as PA is significantly undervalued compared to mother.
karlos: just to confirm 1) if buy pa now at 0.16 ( mother now 0.19). later i convert to mother share through the remiser . Do i need to pay extra money? what is the meaning of exercise price of 0.11? how long it take to convert to mother share? will it normal if mother share start to drop if too many people convert? 2) if let say mother stay at 0.19, mean i projected to gain 0.19-0.16= 0.03cents, it is correct? when normally i can start to sell mother share ( normally 2 week)?
If you have PA, the Preference Share with 3% dividend, to covert you just convert it 1 PA to 1 mother, no need to pay any additional cash. The exercise price of 0.11 was the price paid earlier to buy one PA so now you just need to surrender your PA for mother 1 to 1.
If you are smart enough, you will not convert the PA to mother as the PA is more senior and has 3% dividend and therefor should be priced or valued higher where else Mother for now has not been paying any dividend and junior to PA. Only convert PA if mother are paying much higher dividend than PA.
You are partly right but if you own PA you are getting 3% dividend. We think WZ1 likely to have something good going forward. Note that the Group CEO is buying WA, WB and PA. Very unlikely he is buying these securities especially the warrants if he expect bad news coming !
mother share 19.5 sen, PA 16 sen .... those holding mother share can sell and buy PA, to get arbitrage (no risk) gain !! PA can be converted and get back the mother share :D :D
Ny036 however if mother drop to 0.14 in this on going bear market, then it is not worth it. it is correct? 13/05/2021 4:30 PM ---------------------------------------- Good question! :-)
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
nixonteh85
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Posted by nixonteh85 > 2021-04-16 15:38 | Report Abuse
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