Hi all,

AAA company has conversion of XXX cumulative convertible redeemable preference share into YYY new ordinary shares.
The additional YYY new ordinary shares of RMZZZ each arising from the aforesaid Conversion will be granted listing and quotation with effect from date DDD.

1) What does this mean? Is this good or bad news and why would a company do this?
2) Does this means that it will dilute the share and hence reduce the stock price?
3) the quantity of YYY is so much more than XXX, so preferred share are worth so much? How do we calculate the worth of a preferred share and the amount/quantity to be converted into ordinary share?
4) Conversion will be granted listing and quotation with effect from date DDD, this means that I will be able to sell those shares starting on date DDD?

Thanks

This post has been edited by warrants: Jun 22 2010, 10:47 PM

Thanks Cherroy,

Another question, how and where can I find the previous earning reports/divdents of a company?

XXX is giving Renounceable rights issue of up to RMXXX nominal value 7-year 6% redeemable convertible secured loan stocks (“RCSLS”) at 100% of its nominal value...

So, what is a redeemable convertible secured loan stock?
Does that mean the company is getting loan, from us?
Can it be traded?
And how can we benifit from this?

Thanks Sifu Cherroy
I see...6% is not bad
By the way, this is MALTON...

Another question is, after 7 years, what is the terms and condition for converting to mothershare? Do we need to pay extra to convert to mother share?

Thanks