Company Background
Starburst Holdings Limited (Starburst) specialises in the design and engineering of firearms-training facilities and the design, fabrication, installation and maintenance of anti-ricochet ballistic protection systems for firearm shooting ranges and tactical training mock-ups for law enforcement, military and security agencies as well as civil authorities in Southeast Asia and the Middle East.
See company website link for more information:
http://www.starburst.net.sg/
The company recently offered a rights issue of 1 warrant for every 4 ordinary shares held for an issue price of 1 cent ($0.01), with the exercise price set at 25 cents ($0.25).
Starburst's rights price ended trading yesterday (2 June 2016) at 4.8 cents. It was the last day of trading for the rights.
With a subscription price of 1 cent, it means that investors who bought the rights would have paid a total of 4.8 cents + 1 cent = 5.8 cents to get hold of the warrants.
Starburst's mother shares are trading today (3 June 2016) at 25 cents, which therefore gives a theoretical price of zero for the warrant.
Given the recent indications on the trading price of the rights , one would expect a premium to be attached to the soon-to-be-listed warrants of about 6 cents.
Hence, expected opening price for warrants is estimated at between 5 to 7 cents, giving a premium of about 20% to 28%. This is a little expensive but still considered acceptable for a warrant with a expiry period of 5 years.
Important dates and times to the rights issue:
1.. Last date and time for acceptance and payment of warrants:
Wed 8 June 2016 at 5 pm (9.30 pm for electronic applications)
2. Expected date for crediting of warrants: Wed 15 June 2016
3. Expected date for issuance of warrants : Thu 16 June 2016
4. Expected date for commencement of trading of warrants: Fri 17 June 2016
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