Question related to rights offering backstop agreement
I received only half my requested rights offering over-subscription allotment (forget that I subsequently could have bought as many shares as I wanted for twenty-five cents per share less). Am I correct in concluding neither Ross nor Watsa had to buy any unsubscribed shares if full over-subscription allotments were not filled?
I also got about half of my requested over allotment. We shared the available shares not exercised that were available. Ross and Prema committed to buy all shares not exercised which is not the same as the over allotment .I don't believe they were able to buy additional shares beyond their 25% and their proportional share.of the remaining available shares from the rights offering.
That sounds right to me, unless your broker erred in requesting or crediting shares. Advance payment was required, so a corresponding amount of cash should be credited to your brokerage account for the undelivered shares to confirm your broker processed your order correctly.