LXI Rights Issue

Can someone explain to me about it and why T212 have to sell the shares on your behalf if you don’t click to the link to buy before the date?

I clicked anyway but wanted to know how it works.

Its likely due to all those shares being held collectively in a nominee account. they need a final count of how many rights issues will be acted upon and how many will be sold, as well as who has chosen which.

basically if you don’t show interest in taking part, and provide the funds in time, T212 won’t foot the cost for you to acquire those shares. instead the rights will be sold on as they normally would and you will receive the payment for selling them.

rights issues can cause problems particularly for those who hold the shares in an ISA, used their full allowance, don’t have the funds to buy the shares, but are also unwilling to close another position in order to pay for the rights issue. the rights get sold, but because your ISA cannot accept more funds, you have to receive the money in the Invest account.

1 Like

Interesting to know. Learning more as I go along.

I wish I made £20K a year to put into an ISA but can’t. First World Problems.

1 Like