I called Vanguard today about the offering. I was given a totally different figure for the warrants than they had given me before. It is really hard to understand how an offering could confuse a big broker like Vanguard but either the person I talked to today was totally wrong or the person I had talked too was.
They both agree that the price will be .57 cents American to excercise the sale and the actual price may well be less but not more. They then depart on how to figure the warrants. One said that for ever share I buy I get 8 warrants so 100 shares equals 800 warrants but it takes 20 warrants to get a share at the .76 cent excercise price so the 800 turns into 40 warrants. The person today told me something totally different so I have decided to just screw the whole deal and hope SSN finds a way to hit a buck a share and when they do I sell and move on lol. I have made several phones calls concerning the date of the offering and again according to the person today this is the last day for the options. Who the heck knows.
rogere, if you look at the recent announcement of the increase in reserves, you'll see that SSN has extended the U.S. offering to May 24:
Following the Company’s recent $3.3 million direct registered offering of ADS and warrants to US institutional investors, Samson’s Board of Directors determined to make the same offer as a registered Rights Offer in order to be fair to all Samson shareholders. The Rights Offer is being made to holders of ordinary shares traded on the ASX and to holders of American Depositary Shares (ADSs) traded on the NYSE MKT In light of persistent delays in delivery of the printed prospectuses to U.S. holders, however, and to permit shareholders to consider a series of recent positive developments announced by the Company, including the 61% increase in Proved Reserve detailed below, Samson has decided to extend the Rights Offer until Friday, May 24th in the US and until Friday May 31st in Australia, 2013 and to issue this release explaining some of the reasons for that extension.
More interesting is that since the offering was announced, the US exchange rate has increased against the AU$, so that makes the PROJECTED (won't be figured til the end) price for the ADS about 50 cents US:
Because of Samson’s share structure, the Rights Offer is required to be priced in Australian currency and as underlying ordinary shares (each ADS traded on the NYSE MKT represents 20 underlying shares). Accordingly, the price set for the Rights Offer was 2.5 cents Australian per underlying ordinary share. At the time the US prospectus was filed, the exchange rate was $1.0457 per Australian dollar, which translated to an Offer Price of $0.52 per ADS. Since that time, the Australian dollar has weakened, to $0.9989 per Australian dollar as at the date of this release, which translates to an Offer price of $0.50 per ADS. The actual pricing of the ADSs will be determined by the exchange rate shortly after the close of the Rights Offer in Australia, which is now being
Continued (ran out of room on that last msg):
The actual pricing of the ADSs will be determined by the exchange rate shortly after the close of the Rights Offer in Australia, which is now being extended to May 31st.
NOW, depending on YOUR broker, they're going 2b giving you various figures - previously, I posted that Ameritrade told me there was a $38 special charge.
I believe the reason YOUR broker is saying 57 cents is NOT that that is the price - what they're doing is giving themselves room for a possible change in the exchange rate - in this case, the rate is going in our favor at present. My guess is that they would refund any amount over what the final cost is (unless they've got a special charge like Ameritrade)
Finally, way back, I asked this board if anyone had run the Black-Scholes figure on the warrants which a buyer would receive in this offer. In a recent release, SSN gave the BS (lol) figure at 9.6 cents per ADS. That is a THEORETICAL figure, but it still lowers the cost of the "bundle" if you think of it that way.
Now, IF (big IF), you believe that the ADS will be higher than 79 cents in the next 4 years, then this is a honking good deal - free warrants to buy more shares at a fixed price.
It's not unusual to see this type of offering extended. That usually means they're looking for more holders to exercise. It will be interesting to see how many subscribe.
The broker has it right as you just stated 57 cents and 40 warrants per 100.
Have you been by Earl to see if they fixed the pump as it's been down 40 days and killing the production rate.