Environmental Resources Investments (ERI)’s 2012 warrants price fell by 50% to Rs. 5.50 partly over a regulatory ruling as well as investor uncertainty.
The Securities and Exchange Commission (SEC) had directed that ERI’s proposed extension of the expiration date of Warrant 2012 may be allowed with approval from shareholders, subject however to the restriction on trading of the said Warrants in the secondary market within the extended period from 24 February 2012 to 26 September 2013.
The special resolution was passed unanimously at an EGM yesterday but investors reacted negatively to the SEC ruling. Over 11 million 2012 warrants of ERI traded for Rs. 75 million yesterday whilst ERI share dipped by Rs. 2.10 to Rs. 27. Several of its other warrants dipped as well.