Oxford Lane Capital's rights offering was over-subscribed and will result in the issuance of the full 4,021,373 additional shares that were initially planned, the company announced today. The subscription price of $17 per share looks particularly attractive given that the market price is up to $18.16 this afternoon as the market is closing. The 38 cent price rise today suggests the market is encouraged that the existing shareholder group (the only ones who were offered the non-transferable rights) was willing, on average, to increase its holdings of OXLC by 50% in order to exercise the rights (some of the bounce may be due to the overall market being up today as well, although OXLC, being mostly a credit-oriented investment does not always move in tandem with the equity markets).
The ex-dividend date for OXLC's big 70-cent dividend (60-cent regular, 10-cent special) is March 13th. So we should expect some gyrations around the price before and after that date.
But for now, I'm glad I exercised my OXLC rights, and I'm sure other OXLC owners must be too.
Disclosure: I am long OXLC.