Mike Arnold
Long only, small-cap, tech, growth at reasonable price

Billabong Shareholders Approve Rights Issue

On January 30, 2014, Billabong [(OTCPK:BLLAF)(OTCPK:BLLAY)] shareholders approved a $50 million rights issue to recapitalize the business to allow Neil Fiske, the newly appointed CEO, to effectuate his turnaround strategy.

BLLAY data by YCharts

The Rights Issue

Based on my read of Billabong's Chairman Ian Pollard's Extraordinary General Meeting Address, I gathered the following:

    The rights issue is for $50 million placement; however, shareholders do not have to participate. Shareholders can sell their rights. Alternatively, if they don't exercise their rights or sell them, then their rights will be sold by a bookbuild process and the proceeds from that will be returned to them as value for their rights. Depending on the level of shareholder participation, ...
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