BRO-X MINERALS (C.BXO) Message Board

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Gold/Mining/Energy : BRO-X MINERALS (C.BXO)

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To: Bob Fairchild who wrote (312)	3/22/1999 1:53:00 PM
From: the Chief	Read Replies (2) of 363

If I understand this correctly, the shareholders of Bro-X that do not subscribe to this rights offering will still be keeping their original shares? However for ten cents you will exchange your old shares and receive two preferred shares (for each old share) plus the option of receiving an extra share for an additional ten cents/share ? I have just completed my first call to Mr. Devlin. Your interpretation of the share issuance is correct...mine was incorrect. I relied on an interpretation from the Globe & Mail article. Here is an excerpt from the AGM "Therefore it is proposed that the Company make a rights offering to its shareholders of one right for each common share held. Each right will entitle the holder thereof to subscribe for one preferred, series 2, share and one share purchase warrant at $.10c per unit. Each preferred, series 2, share shall be redeemable by the company at anytime at $.10c per share and shall be convertible at anytime by the holder thereof into two common shares of the company. Each share purchase warrant shall entitle the holder thereof to subscribe for one common share of the company at $.10c per share" In laymans language. If you do not exercise your right...then you retain your original # of shares in the new Company...however those who exercise will dillute your shares by a 3 to 1 margin. That is to say...if I donot exercise my 60,000 share right, then I will have 60,000 shares in the new company. If I do exercise my right and pay .10c then I will have my original 60,000 shares + 120,000 shares in the new company. Exercsing warrants are done at .10c each and are only attached to the right. Therefore I would only be entitled to 60,000 warrants. Mr. Devlin has stated that if Bro-X does not reach its goal of $750K then the money will be returned to the people that exercise their rights. I have not seen that in writing yet...after I read everything I will repost any info! the Chief

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