Sorry if this has been previously posted, but what is teh expected value of the rights stock. I am seeing CKL as what is being offered for 0.30 for 10% of MDTL stock owned.
Is there any information on CKL (I get unrelated stock quotes on Yahoo). It also mentions Scorpion Surgical Technologies as part of this mix.
Thanks for any info.
I never said I am not exercising. You seem to miss my point. The rights offering is a way to raise the price of Medis shares......by a lot.....quite a lot. The spun-off company is interesting and worth consideration on its own. But not just now. After the dust settles on Medis shares.
So you are not excersizing that right to buy the new shares. I thought that was maybe a "gift" to shareholders, like an extra dividend. That would be the case if the new shares were certain to be worth more than the 0.30.
We seem to have a different perspective here. Is there no benefit being given out with this rights offering?
You're not up to speed on the rights issue. The expected value is not the share price. The expected value is that the rights issue will smoke out some of the naked shorts and others who hold fake shares. The rights issue causes all shares to be inspected. Any fake shares (there are several million, according to soem estimates) have to be replaced by real shares. Brokerages that distribute fake shares will have to go onto the market and buy real shares. The result is higher share price for real MDTL share holders.
Yes, I am not up to speed.
It seemed that it is not MDTL shares taht are being offerred to be purchaced. If that is the case what shares are being offered?
How does the rights offering force people to cover thier shorts? WHat causes them to be inspected?