Tom:
I agree. It happened to me here in the U.S. too, on a NASDAQ listed
company..symbol NEON.
My initial reaction was: "This stinks!" As you note, one must unravel
the thing to actually make any sort of educated guess as to if/how the
shareholders benefit.
What REALLY used to hurt was the spin-offs. On ordiary shares, there
is no provision for warrants, etc. to be issued to foreign owners.
I had bought Wai Kee Holdings,Ltd. because they were building a
nice toll road into China. As part of the deal, they were to get
a percentage of the toll revenue for several years. When the road
was almost done, Wai Kee spun off the toll road & the toll booths,
into a company called Road King. Since I was not a HK resident,
I did not receive the warrants necessary to buy Road King shares.
I have no beef about why I didn't get the warrants...the expense
of registration with the S.E.C. , etc. was in no way justified
by the number of shares owned in the U.S. . I cannot fault management for making a sound business decision. Still, If I ever get to that
road, I would hope I'm not forced to pay the toll. <bg>
Doug |
