I see that the rights offering date has been extended. Other than the obvious that they cant sell the rights as fast as they planned, could there be a chance that they cancel the offering all together? Not sure legally what they can do and why they are allowed to change dates so easily? Any thoughts??
HONG KONG--(BUSINESS WIRE)--
can you see the change in date now??
Asia Entertainment & Resources Ltd. (“AERL”) (AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter in Macau, today announced that it has commenced its previously announced rights offering and filed with the Securities and Exchange Commission (the “SEC”) the prospectus supplement relating to the rights offering.
The rights offering will expire on June 21, 2013 at 5:00 p.m., New York City time, unless extended. The subscription rights have been admitted for trading on the Nasdaq Global Market under the symbol “AERLR”. AERL expects the rights can be traded on the Nasdaq Global Market commencing on June 6, 2013 until 4:00 p.m., New York City time, on June 21, 2013, unless the rights offering is extended. AERL intends to use the net proceeds of the rights offering to pay off outstanding indebtedness owed to certain of its shareholders. Sterne, Agee & Leach, Inc. has been appointed dealer manager for the rights offering.
It's very normal to extend rights offering dates. What do you mean by "can't sell the rights"? They are given for free. Plus it is guaranteed that ALL will be exercised either by the holder or the standby people. The money is basically in the bank.