TruScreen Group rights offer
TruScreen Group Limited (NZX/ASX:TRU) has announced a 1 for 5 renounceable rights offer. Learn more about the offer and how to take part through Sharesies.
Offer summary
1-for-5Get the right to buy 1 new TRU share at the offer price for every 5 you already own.
$0.03 NZDPer share offer price.
15 March 2023Last day to take part in the offer.
TruScreen Group Limited (“TruScreen”) is aiming to raise up to approximately $2.2 million NZD through the offer, and plans to use the money towards:
support working capital required as the business grows
support TruScreen’s distributors with marketing collateral and training to assist them in growing their markets, and
funding initiatives to optimise business performance in TruScreen’s drive to profitability.
To learn more, check out:
What's a rights offer?
A rights offer is one way that a company raises capital (cash). It gives existing shareholders the opportunity to buy more shares in the company—usually at a discounted price and in proportion to the amount of shares they already own.
Existing shareholders receive ‘rights’ that they can use to buy shares through the offer. To do this, rights need to be ‘exercised’—in other words, just holding rights doesn’t mean they’ll convert automatically into shares.
To learn more, read our article on rights offers.
Who received rights?
If you held TruScreen shares at market close on Thursday 23 February 2023 through Sharesies, rights will have been allocated to your Portfolio on Tuesday 28 February 2023 as ‘TruScreen Group Rights’.
You’ll have received 1 right for every 5 TruScreen shares you held, each giving you the option to buy 1 new TruScreen share at the offer price of:
$0.03 NZD per share if you hold TruScreen shares on the NZX
$0.029 AUD per share if you hold TruScreen on the ASX.
If you held a fractional amount of TruScreen shares, you’ll have been allocated a proportional amount of rights.
Any TruScreen shares bought after Thursday 23 February 2023 through Sharesies are not eligible to receive rights.
Can I take part
Whether or not you already hold TruScreen shares, you may be able to take part in the offer.
If you were allocated rights on Tuesday 28 February 2023 through Sharesies, you’re able to:
exercise some or all of your rights to buy shares at the offer price
do nothing with some or all of your rights
apply to buy more shares through the oversubscription bookbuild facility .
Rights are not listed or tradeable on the NZX or ASX, so you won’t be able to sell your rights to someone else through Sharesies.
To take part, you need to be an existing shareholder and have a registered address in New Zealand or Australia. You can’t take part if you’re based outside of New Zealand or Australia, or you’re acting on behalf of a person based outside New Zealand or Australia.
To view your rights, go to your Portfolio.
If you weren’t allocated rights on Tuesday 28 February 2023 through Sharesies, you can apply to buy shares at the offer price through the oversubscription bookbuild facility.
As a new investor in TruScreen through Sharesies, you’ll need to have a registered address in New Zealand to take part in the oversubscription bookbuild facility. You can’t take part if you’re based outside of New Zealand, or you’re acting on behalf of a person based outside New Zealand.
To learn more, check out our ‘oversubscription bookbuild facility’ section below.
How to take part
Each right gives you the option to buy 1 new TruScreen share at the offer price of:
$0.03 NZD per share if you hold TruScreen shares on the NZX
$0.029 AUD per share if you hold TruScreen on the ASX.
If you wish to take up the offer, you’ll need to apply to exercise rights you hold. That means paying the offer price of $0.03 NZD or $0.029 AUD for every right you want to turn into 1 new TruScreen share.
Exercise some (or all) of your rights
To exercise some or all of your rights, go to ‘TruScreen Group Rights’ in your Portfolio, and select Exercise.
You’ll need enough money in your Wallet at the time that you exercise to pay the offer price per share. If you need to convert currency to pay the offer price, you’ll also need to pay a currency exchange fee.
If you exercise your rights, TruScreen is expected to allocate the shares you’re buying on Wednesday 22 March 2023.
Note: The price you pay for new shares in the offer may be higher or lower than the price that shares are trading at on the NZX or ASX.
Unexercised rights
Any rights that you haven’t exercised by 3PM (NZDT) Wednesday 15 March 2023 will expire and be removed from your Portfolio once the offer is completed.
The shares the rights would’ve entitled you to will become available for other investors to buy in the oversubscription bookbuild facility.
If this happens:
you may or may not receive some value for them
your existing shareholding will be diluted (meaning each share you hold will represent a smaller proportion of ownership in the company than before the offer).
Exercise period on Sharesies
Tuesday 28 February 2023 to 3PM (NZDT) Wednesday 15 March 2023.
Fees
You won’t be charged the Sharesies transaction fee to exercise rights, but you will be charged currency exchange fees if you convert any money to NZD or AUD in order to participate.
When a company raises capital by a rights offer and its existing shareholders do not take up their full opportunity to participate, the company can opt to run an oversubscription bookbuild facility.
This means that any leftover shares as part of the rights offer can be made available to existing or new investors to buy.
TruScreen's oversubscription bookbuild facility gives investors the opportunity to apply to buy TruScreen shares that aren’t taken up through the rights offer.
The price of TruScreen shares through the oversubscription bookbuild facility will be determined by a book building approach, and will be equal to or above $0.03 NZD per share.
Note: This may be higher or lower than the price the shares are trading at on the NZX or ASX.
Applying for the oversubscription bookbuild facility
To apply, go to ‘TruScreen’ in Sharesies, select ‘Buy’, then ‘Apply for oversubscription bookbuild facility ’. Just make sure it's the NZX listing!
Your application will be for TruScreen shares on the NZX and in NZD. You’ll need to give the highest price you’re willing to pay per share, and choose the maximum amount of money you’d like to invest through the oversubscription bookbuild facility. You’ll need to have enough money in your Wallet at the time of your application.
If there’s more interest than there are shares available, it might be scaled. This means you may receive fewer or none of the shares that you apply for.
If your application is successful, TruScreen is expected to allocate the new shares on Wednesday 22 March 2023.
Oversubscription bookbuild facility period on Sharesies
Tuesday 28 February 2023 to 3 PM (NZDT) Wednesday 15 March 2023.
Fees
You won’t be charged the Sharesies transaction fee to apply for the oversubscription bookbuild facility, but you will be charged currency exchange fees if you convert any money to NZD in order to participate.
Key dates
Event | Date |
|---|---|
Record date for the offer | 5 PM (NZDT) Monday 27 February 2023 |
Rights appear in Sharesies Portfolios | Tuesday 28 February 2023 |
Rights exercise period opens | Tuesday 28 February 2023 |
Applications for oversubscription bookbuild facility open through Sharesies | Tuesday 28 February 2023 |
Applications for exercising rights close through Sharesies | 3 PM (NZDT) Wednesday 15 March 2023 |
Applications for oversubscription bookbuild facility close through Sharesies | 3 PM (NZDT) Wednesday 15 March 2023 |
TruScreen expected to allocate new shares | Wednesday 22 March 2023 |
New shares expected to start trading on the NZX/ASX | Wednesday 22 March 2023 |
Payment of any premiums from the oversubscription bookbuild facility (if applicable) | By Friday 24 March 2023 |
Before taking part
All investing involves risk—you aren’t guaranteed to make money, and you might lose the money you start with.
We encourage you to do your due diligence, consider the risks involved, and speak to a licensed financial advice provider if you need help deciding whether to take part.
For some things to consider before taking part, check out the FMA’s guide to taking part in a rights issue.
And now for the legal bit
Sharesies is not responsible for the offer and Sharesies can’t offer any financial advice on whether or not you should take part in this offer.
When taking part through Sharesies, the Sharesies General Terms and Conditions apply (with necessary changes to accommodate this rights offer) and the definition of shares extends to rights. Fees may apply for use of the platform provided by Sharesies Limited. Sharesies will be paid a fee from TruScreen for distributing this offer to Sharesies investors.
The information provided is not financial advice and has been prepared without taking into account your objectives, financial situation, or needs. Speak to a licensed financial advice provider for advice specific to your circumstances.
