I was hoping that someone can clear up the following for me
I currently hold some shares in WEZ (dam tip sheet ) and they are releasing a rights issue based on 11 shares for every 10 held @ a cost of $0.06 cents per share.
Now to my understanding there are three avenues of action to take, which are as follows,
Take up the full entitlement of shares,
Take up part of the entitlement of shares,
Take up none of the entitlement of shares,
To date I have done nothing in regards to the above and have noticed today in my E*Trade account that the full amount of entitlements have appeared under the code WEZR
Now this is where I get confused and would appreciate some clarification on the following.
Does this mean I can sell my rights on the market to anyone at a market price?
For example, say I sold them at $0.01 cent per share then the buyer would actually end up paying $0.07 cents per share?
If I do sell them then I get the proceeds from the sale even though I have taken up no action earlier?
If I want to retain part of the entitlement do I just sell the other half at whatever price?
What if I wanted to take up the full entitlement? Do I fill out the rights prospectus and I assume the WEZR rights will convert into WEZ ordinary shares?
If I don't wish to take up any of the entitlement and I don't sell the rights are they simply forfeited?
Sorry for the newbie questions but I would really appreciate you assistance in clarifying my understanding of the above.
Thanks again for your assistance