anyone know what the below mean? after 18 September 2009 the gens-c1 share price will be lower or higher? thanks in advance
announcement made by GENS on 9 September 2009 pertaining to the renounceable
underwritten rights issue of up to 2,043,716,094 new ordinary shares in GENS (“Rights Shares”) at an
issue price of SGD0.80 for each Rights Share, on the basis of one (1) Right Share for every five (5)
existing ordinary shares held in GENS as at 23 September 2009 (“Books Closure Date”) (“Rights
Issue”).
In accordance with Condition 6 of the Deed Poll dated 7 April 2009, the terms and conditions of the
GENS-C1 shall be adjusted as set out below.
1. Exercise Price
The Exercise Price for the GENS-C1 will be adjusted as determined by the following formula:
1 + (R/S) x M
1 + M
x X
where,
R = SGD0.80, being the subscription price per Rights Share under the Rights
Issue.
S = The cum-rights share price being the last traded price of GENS Shares on
the last market day on which GENS are traded on a cum-rights basis.
M = 1/5, being the number of new GENS shares (whether a whole or fraction) per
existing GENS Share each holder thereof is entitled to subscribe.
X = Existing exercise price insofar as it relates to GENS immediately prior to the
Rights Issue. The existing exercise price of GENS-C1 is SGD0.98.
2. Warrant Component/Exercise Ratio
The warrant component/exercise ratio for the GENS-C1 will be adjusted as determined by the
following formula:
1 + M
1 + (R/S) x M
x E
where,
E = 1/3, being the existing warrant component of GENS-C1 insofar as it relates to
GENS immediately prior to the Rights Issue.
The actual adjustments to the GENS-C1 will be announced on 18 September 2009, being the date the
GENS Shares will be traded ex-Rights.
The adjustments shall be effective on 9.00 am on 18 September 2009.
This announcement is dated 10 September 2009.
Go lower, because dilution from rights.