Thursday, 3 October 2013 00:49
Environmental Resources Investment (GREG) announced that none of the 2012 warrants were converted into shares in the warrant conversion concluded on 26 September 2013.
As per the plan 2012 warrants amounting to 347,721,600 warrants at a price of Rs. 33 were to be exercised from 24 February 2012 and extended to 26 September 2013.
With ERI share trading at Rs. 13 level, no warrant holder was keen to exercise the option at what now appears to be a hefty premium. During the quarter ended June 2013, the highest price of ERI share was Rs. 18.70 and the lowest was Rs. 14.50.
The once highflying venture also has 2014 warrants with conversion of an equal amount of shares at Rs. 36 worth Rs. 12.5 billion and Rs. 13.5 billion via 2015 warrants. The 2014 warrants are trading at 50 cents and the 2015 warrants at Rs. 1.30.
Following alleged mismanagement, ERI ran into serious difficulties last year, forcing a change of ownership and Board of Directors.
Taprobane Holdings now holds a 28.9% stake in ERI’s voting shareholding along with Caledonian Securities Ltd. (27.7%) and Capital Trust Holdings (13%).
Former controlling shareholder Lionhart Investments Ltd. held 90.8% of the 2012 warrants. Caledonian Securities holds 72% of 2014 warrants whilst Lionhart holds 20% and the same percentages apply on 2015 warrants as well.