Rights Cum Warrants Issue
Ultro is proposing a 2 rights@$0.01 for every share held, and 1 free warrants for every 4 rights successfully applied.
Based on the last done price of $0.175 on 20th july 2007, after the issue
ave price will be $((0.175+0.01+0.01)/3)=$0.065
Assume a price spike to $0.25 ( which may not seem to speculative ), the theortical price is $((0.25+0.01+0.01)/3)=$0.09 which is still relatively ok.
However, Ultro did not indicate details of the usage of the funds raised. THerefore , there may be a certain risk involved here.
But , i will call for a spectulative BUY with target at least $0.25
Ultro is proposing a 2 rights@$0.01 for every share held, and 1 free warrants for every 4 rights successfully applied.
Based on the last done price of $0.175 on 20th july 2007, after the issue
ave price will be $((0.175+0.01+0.01)/3)=$0.065
Assume a price spike to $0.25 ( which may not seem to speculative ), the theortical price is $((0.25+0.01+0.01)/3)=$0.09 which is still relatively ok.
However, Ultro did not indicate details of the usage of the funds raised. THerefore , there may be a certain risk involved here.
But , i will call for a spectulative BUY with target at least $0.25
Comments