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Question

How do I work out my entitlement and the cost of taking it up on a Rights Issue or Open Offer?

Answer

If a Rights Issue or an Open Offer is announced, the ratio and Call Cost can be used to calculate the cost of taking up the new shares. If a Rights Issue is announced and you held the Ordinary shares on the Ex Date, you will be entitled.

If, for instance, you held 1000 Bank plc shares on the Ex date of a Rights Issue offering 2 new shares for every 5 held at £0.20, then your entitlement would be as follows:2 new shares for every 5 held on the Ex date means that you could buy 400 new shares (2new/5existing*1000 ORD = 400 rights). Call cost at £0.20 per new share purchased = 400 x £0.20 = £80.00

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