What are Lapsed Rights Proceeds?
All Rights Issues will be underwritten by a 3rd party who, in the case that shareholders do not take up their total entitlements, will take up (underwrite) the remaining Rights on behalf of the company and then carryout a sale of all new Ordinary shares received, in the Market. Any premium (positive difference) over the sale price of the Ordinary shares and the take up price will then be distributed to those shareholders who did not either sell or take up their rights. If no premium was attained during the sale of New Ordinary shares sold by the Underwriters, no Lapsed Rights Proceeds will be distributed and Nil Paid shares will be removed from client’s accounts with no associated value.
