 Exercise
of Barramundi Warrants (BRMWB) –
24 November 2009 TO 27 October 2011
Barramundi issued one warrant for each two shares held
on 23 October 2009 (record date) to eligible shareholders.
The warrant entitles the warrant holder to subscribe
for and be allotted one ordinary share in the capital
of the Company, credited as fully paid, at an exercise
price of $0.75.
A warrant is exercisable in whole or in part, subject
to a minimum of 500 Warrants, on any of the below exercise
dates:
Tuesday 24 November 2009
Tuesday 23 February 2010
Tuesday 25 May 2010
Tuesday 24 August 2010
Tuesday 23 November 2010
Tuesday 22 February 2011
Tuesday 24 May 2011
Tuesday 23 August 2011
Thursday 27 October 2011 (Final Exercise Date)
A Warrant entitles the holder to:
- certain information
from the Company, including its annual and half yearly
reports and notices of meetings;
- any other
rights conferred by the Company’s constitution,
the Companies Act 1993 or the Listing Rules; and
- attend (but
not vote at) any general meetings of the Company.
A Warrant does not entitle the holder to:
- vote at a
meeting of the Company’s Shareholders;
- participate
in any dividends declared by the Board of Directors;
or
- participate
with any other securities in residual assets of the
Company upon liquidation of the Company.
You have a number of choices with your warrants:
| 1. |
You can elect to exercise some or all of your
warrants (subject to a minimum of 500 warrants)
on any of the above exercise dates between 24 November
2009 to 27 October 2011 (taking into consideration
the trading price of Barramundi Shares at or around
the exercise date) – please refer to below
instructions. |
| |
|
| 2. |
You can sell your Barramundi Warrants at any time
on the NZSX up until the completion of the exercise
period at 27 October 2011. |
Any Warrants not exercised by 27 October 2011 will
lapse and all rights in regard to them will expire.
How do you decide if and when to exercise your
warrants?
The decision on whether to exercise a warrant is typically
based on the trading price of the underlying shares
(ie the Barramundi shares trading under the code BRM)
and the remaining term of the warrants. If the share
price is above the $0.75 exercise price during the exercise
period then by exercising the warrants you will receive
shares that are trading above $0.75 for the cost of
$0.75. For example if the share price was $0.90, by
exercising a warrant for $0.75 you will receive an ordinary
share in Barramundi that has a trading price of $0.90.
However, you should also take into account the price
you may be able to receive by selling your warrants
on the NZSX as it may be higher than the gain you may
make by exercising your warrants. For example, if in
the above example scenario the Warrants were trading
at 20c then it may be better to sell the Warrants on
the NZSX directly, as the proceeds from selling the
Warrants should be higher than the theoretical 15 cent
gain from exercising the Warrants ($0.90 - $0.75). Additionally
the warrants do not expire until the end of the exercise
period being 27 October 2011. In most cases it is theoretically
sub-optimal to exercise warrants while the exercise
period has not lapsed, as long as the shares are not
paying a large dividend. This is because retaining the
warrants preserves the ability to choose whether or
not it is optimal to convert the warrants into shares
at a later date, with the only cost being the lack of
entitlement to any dividend that is paid on the shares
in the interim. Given that Barramundi has introduced
a long term dividend policy of paying out 2% of average
NAV each quarter it may be optimal to time the exercise
of warrants with the dividend payment record dates.
This will give the new shares entitlement to any upcoming
dividend.
If the Barramundi share price is below the $0.75 exercise
price then it is clearly non-optimal to exercise the
warrants as effectively you will be paying $0.75 for
a share that is trading at less than $0.75. In this
circumstance it would be cheaper to achieve the increase
in your investment in Barramundi by acquiring Barramundi
Shares directly at the market price.
If you are in doubt as to whether it is desirable to
exercise your Warrants, you should contact your financial
advisor.
What do I do if I wish to exercise my Warrants?
A warrant is exercisable on any of the dates stated
above.
An Exercise Form will be provided closer to the exercise
period along with further details on how to exercise
a warrant.
| Current Share Price Information* |
|
| Description | Code | Last | | Barramundi Shares | BRM | $0.74 |
|
| * this table is
live and is updated as trading occurs |
| Weekly
Price Chart - Barramundi Shares (BRM) |
|
Click here to view the Barramundi NAV v Share Price. |
| Weekly
Price Chart - Barramundi Warrants (BRMWB) |
| This information is currently unavailable. This information is currently available on www.nzx.com under ticker code BRMWB. |
Calendar
- Allotment
of new warrants - 27 October 2009
- Listing date
of new warrants on NZX (ticker code “BRMWB”
- 28 October 2009
- First new
warrants exercise date – 24 November 2009
- Dividend payment
- 18 December 2009
- Interim period end - 31
December 2009
- Mailout of interim report
- February 2010
- New warrants exercise date
- 23 February 2010
- Dividend payment- 19 March
2010
Regular Updates
If you would like to receive monthly email updates
on progress with Barramundi – register
here.
Check your Holding
To check your holding on the register click
here. Enter the Company Code “BRM” or
“BRMWB”, your Holder Account Number and
FIN and click submit.
If you want to transfer your shares to another holding
you may download an Off Market Transfer Form by clicking
here. Send the completed transfer form direct to
Computershare at Private Bag 92119, Auckland. |
