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Technology Stocks : Allen-Vanguard Corp (TSE: VRS, ADR: ALNVF) -- Ignore unavailable to you. Want to Upgrade?

To: kidl who wrote (89)	1/26/2009 11:47:25 AM
From: Sultan	Read Replies (1) \| Respond to of 115

Allen-Vanguard also announced that it intends to complete a rights offering, which will be contingent on the completion of the Tailwind transaction and required regulatory approval. Under the terms of the rights offering, subject to such regulatory approval, Allen-Vanguard shareholders will be given the opportunity, pro rata with their existing ownership, to acquire subscription receipts for C$0.285 per subscription receipt entitling the holders thereof to acquire one additional common share for each subscription receipt. The Company will announce the expected size of the rights offering when it files its final prospectus in the next several weeks; the arrangement agreement permits Allen-Vanguard to complete a rights offering of up to C$100 million. Don't see a discount.. The way I am looking at it, if every share holder subscribe to rights offering, then VRS share o/s goes up thereby owning a bigger % of the combined company and pumping more cash into the combined company.. but even at max. VRS share holders own few % lower then TNF share holders.. Check the presentation.. all of it is laid out.. Personally, don't plan to subscribe to the offering..