Lonmin: Thanks, but no thanks
By GCRU Gold News on Tuesday, November 10 2015, 10:20 - Permalink
Should you not follow your rights, you will be diluted by 98% (essentially into oblivion). This means that for every one rand in earnings you were entitled to as a shareholder pre the rights offer, you will only be entitled to 2c of earnings post the offer. The enormous increase in the number of shares being issued means the Lonmin share price will end up at about 35c at the conclusion of the rights offer.