Cardno Rights – Money on the Table

By Jason Fittler

You must act on this rights issue or you will lose money.

You can either pick up some extra Cardno at a 19% discount or sell the rights and take the cash. Either way you will make some money. But first I have included some detail on the offer.

Cardno Limited (CDD) has announced a fully underwritten 1 for 6 renounceable rights issue to raise approximately A$49 million.  The issue price under the Rights Issue is $3.25 per share, being a 19% discount to the last closing price of Cardno shares on 30 June 2010 of $4.00 per share and a 16.5% discount to TERP of $3.89 per share.  Eligible shareholders may also apply for additional shares over and above their entitlement under a top-up facility. 

Rights trading will then commence on Wednesday 7 July and continue until Monday 26 July. 
The proceeds from the Rights Issue will be used to assist in funding the acquisition of two major US based environmental consultancy firms, ENTRIX Holding Company and Environmental Resolutions, Inc (announced on 10 June 2010) and to strengthen Cardno’s balance sheet.

New Shares issued under the Rights Issue will rank equally with existing ordinary shares on issue and will be entitled to the final dividend payable in October 2010.

For more information on Cardno Limited (CDD) please call us on 07 4771 4577.