LON:AEX | Warrant Expiry 31st August - Nothing Will Happen In 1 Month To Drive The Price To Above 22p........

1st Aug '10 by oilretire

7 comments 5174 reads

Well that is in the opinion of HBOS share dealing -

We write to inform you that your Aminex PLC warrants will expire on 31st August 2010.

The Aminex Ordinary shares were trading at 8.38 pence on the main market of the London Stock Exchange at the time of publishing this communication. As the warrant exercise price of 22 pence greatly exceeds the price at which the Ordinary shares can be purchased on the open market, we will not be offering the Final Exercise Opportunity to warrantholders.

I know there is next to zero chance this will happen, but anything is possible in the O&G world - what price if there's a stonking result from the US well & news of a gas supply agreement in Tanz?

Anyway, regardless of the dreams can HBOS really take the decision out of my hands with one month to run?

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nigelpm

1st Aug '10

That's a brave move. If they are wrong there will be uproar.

I have no idea I'm afraid on the legalities of it. Nominee account holders SHOULD have the same rights but from experience this isn't the case.

djpreston

Hbos have no right to deprive warrant holders of their rights under the security until those rights have lapsed ie after the last date for exercise of the warrant.

Say OM10 comes in and flows at 1000 bopd? What then? Or a bid, or an announcement re Songo Songo? They'd be on very dangerous grounds to unilaterally deprive warrant holders of their rights.

bankerbasher

2nd Aug '10

The warrants are worthless and anyone with any common sense knows that paperwork requires to be processed before the exersize date!

Even with good news from somewhere there are 150 million shares issued @ 6/7p over the last year waiting to be sold into the market! So for the price to trade above 22p in August is extremely unlikely.

This is another example of a management team unable to get the share price moving within their own time frame by monetizing assets (plus the one year extension) to sell these warrants and raise some finance at decent levels.

Don't blame HBOS for the situation.

Watch out for another fundraising at single digits comming your way soon.

BB

unlikely2

While in reality the possibility of the SP exceeding the strike price by sufficient margin to make exercising the warrants viable is remote, I do not think that is the point.

Warrant holders have purchased the right to exercise up to the closing date - and although not too familiar with the mysterious workings of the stock market, I would expect to be able to do that up to within two or three working days of the deadline, if not the last working day.

Frankly if HBOS cannot deal with the paperwork in considerably less than one month then I am definitely with the wrong broker. I will be checking into this and reveiwing my options. What would HBOS have done if the share price was sitting at 21p with results imminent? (I know - but I can dream)

NABcom

Always found correspondence re the warrants/deadlines a bit ambiguous, Barclays is similar

"The market price of an Aminex ordinary share is currently lower than the exercise price. Due to this we are not actively offering this final exercise to you."

but then adding

"However, if you wish to exercise your warrants at this "final opportunity" you can do so by calling our Corporate Action Team............by no later than 24 August 2010

peterg

The Barclays letter is entirely reasonable, and also shows how little notice they need to be able to exercise. In contrast the HBOS position, though it may seem eminently logical to whoever in the back office wrote it, is a recipe for serious problems for them should there be a big price move in the next 3 weeks. Unlikely, but 300% increases in 3 weeks do happen, and any broker who acts on the basis they don't shouldn't be in business.

oilretire

I contacted HBOS & they have passed the blame on..........

...... I must advise that we are not responsible for any of the terms laid out in the communication. We provide event details as supplied by the registrar and as such we have no jurisdiction whatsoever.

If you continue to be unhappy with the decision please contact the company registrar directly.

Could that be true? I'm not so sure..........

Warrant expiry 31st August - nothing will happen in 1 month to drive the price to above 22p........

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Oilretire

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