Shareholder Services
Annual Shareholders Meeting
Shareholders are encouraged to attend the Marlin Annual Shareholders Meeting on Thursday 4 November 2010 at 10.30am at the Ellerslie Event Centre. You can RSVP by emailing us.
Warrants
Marlin Global Limited ("Marlin" or "the Company") listed on the New Zealand Stock Exchange on 1 November 2007.
For every two shares issued under the Initial Public Offering (“IPO”) investors received one Warrant which entitled the warrant holder to subscribe for and be allotted one ordinary share in the capital of the Company, credited as fully paid, at an exercise price of $1.00.
A warrant is exercisable in whole or in part, subject to a minimum of 500 Warrants (or such lesser number as the warrant holder may hold), on 15 September 2010 and 31 October 2010 (final exercise date).
A Warrant entitles the holder to:
- certain information from the Company, including its annual and half yearly reports and notices of meetings;
- any other rights conferred by the Company’s constitution, the Companies Act 1993 or the Listing Rules; and
- attend (but not vote at) any general meetings of the Company.
A Warrant does not entitle the holder to:
- vote at a meeting of the Company’s Shareholders;
- participate in any dividends declared by the Board of Directors; or
- participate with any other securities in residual assets of the Company upon liquidation of the Company.
You have a number of choices with your warrants:
- You can elect to exercise some or all of your warrants (subject to a minimum of 500 warrants, or such lesser number as the warrant holder may hold) on 15 September 2010 and 31 October 2010 (final exercise date) – please refer to below instructions.
- You can sell your Marlin Warrants at any time on the NZSX up until the completion of the exercise period at 31 October 2010.
Any Warrants not exercised by 31 October 2010 will lapse and all rights in regard to them will expire.
How do you decide if and when to exercise your warrants?
The decision on whether to exercise a warrant is typically based on the trading price of the underlying shares (i.e. the Marlin shares trading under the code MLN) and the remaining term of the warrants. If the share price is above the $1.00 exercise price during the exercise period then by exercising the warrants you will receive shares that are trading above $1.00 for the cost of $1.00. For example if the share price was $1.30, by exercising a warrant for $1.00 you will receive an ordinary share in Marlin that has a trading price of $1.30. The exercising of warrants has a dilutionary effect on the share price.
However, you should also take into account the price you may be able to receive by selling your warrants on the NZSX as it may be higher than the gain you may make by exercising your warrants. For example, if in the above example scenario the Warrants were trading at 38c then it may be better to sell the Warrants on the NZSX directly, as the proceeds from selling the Warrants should be higher than the theoretical 30 cent gain from exercising the Warrants ($1.30 - $1.00). Additionally the warrants do not expire until the end of the exercise period being 31 October 2010. In most cases it is theoretically sub-optimal to exercise warrants while the exercise period has not lapsed, as long as the shares are not paying a large dividend. This is because retaining the warrants preserves the ability to choose whether or not it is optimal to convert the warrants into shares at a later date, with the only cost being the lack of entitlement to any dividend that is paid on the shares in the interim.
If the Marlin share price is below the $1.00 exercise price then it is clearly non-optimal to exercise the warrants as effectively you will be paying $1.00 for a share that is trading at less than $1.00. In this circumstance it would be cheaper to achieve the increase in your investment in Marlin by acquiring Marlin Shares directly at the market price.
If you are in doubt as to whether it is desirable to exercise your Warrants, you should contact your financial advisor.
What do I do if I wish to exercise my Warrants?
The remaining exercise dates are 15 September 2010 and 31 October 2010 (final exercise date).
An Exercise Form will be provided closer to the exercise period along with further details on how to exercise a warrant.
Calendar
30 June 2010 - Financial Year End
August 2010 - Full Year preliminary result
September 2010 - Annual Report publication
November 2010 - Annual Shareholders Meeting
Regular Updates
If you would like to receive regular email updates on progress with Marlin – register here. Check your Holding
To check your holding on the register click here. Enter the Company Code “MLN” or “MLNWA", your Holder Account Number and FIN and click submit.
If you want to transfer your shares to another holding you may download an Off Market Transfer Form by clicking here. Send the completed transfer form direct to Computershare at Private Bag 92119, Auckland.
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