On 8 March 2024, Paladin Energy Ltd (ASX Code: PDN) announced a 1 for 10 share consolidation. The share consolidation was approved at the AGM. The last day of trading in pre-consolidated securities will be Wednesday, 10 April 2024. Trading in post-consolidated securities will commence on Thursday, 11 April 2024.

Indicative timetable impacting PDN ETOs

New post-consolidation shares will trade on a deferred settlement basis under ASX code PDNDA on Thursday, 11 April 2024 to Friday, 19 April 2024. The code will revert to PDN when normal T+2 trading commences on Monday, 22 April 2024

Effective Date

All trading in PDN ETO contracts will be on an adjusted basis effective on Thursday, 11 April 2024.

This standard method of adjustment will be processed on Wednesday, 10 April 2024 after market close. ASX will calculate and perform the following adjustments on open positions.

Implications for PDN ETOs

ASX Clear will determine an adjustment to PDN ETOs for the share consolidation under ASX Operating Rule 2230. Subject to the consolidation being effective the contract size will be decreased to a tenth of its original size. The number of options contracts registered as open contracts in the name of each writer and taker will remain the same. The new exercise price per lot is proportionally increased to ten times the old exercise price, with the exception being that for LEPOs the new strike will be rounded back to 1 cent and a corresponding cash adjustment made.

Contract Size

Theoretical New Contract Size = Old Contract Size x Issue Ratio

TC = OC x Issue Ratio

Where

TC = Theoretical New Contract Size

OC = Original Contract Size (100)

Issue Ratio = Consolidation amount provided (1 share for every 10, = 1/10, = 0.1)

e.g.

For 100 contract size:

New Size = 100 x (0.1)

New Size = 10

Exercise Price

The issue ratio (Strike Factor) has been determined as 0.1, the consolidation details of 1 for 10 shares provided in the PDN announcement.

The theoretical new contract size is calculated to the nearest four decimal points in the intermediate calculation for the new exercise price.

New Exercise Price = Old Strike Price / Issue Ratio

e.g.

For 100 contract size and on old strike price of 35 cents

New Strike = 0.35 / 0.1

New Strike = $3.50, or 350 cents

Cash Adjustment Payments made for Contract Size Rounding

The theoretical new contract size (TC) will be calculated to 4 decimal places and will be truncated using the TMC threshold so that if the theoretical new contract size falls between 100 and to up to but not including 102, the new contract size will be truncated to the standard 100. If the theoretical new contract size falls above 102, then the new contract size will be truncated down to the nearest whole number.

The difference, due to truncation, between the theoretical contract size and the adjusted (new) contract size, will be cash adjusted using the ETO cash equalization adjustment payment formula detailed in the final notice.

For cash equalisation payments for any contract size rounding, takers (buyer) will be credited and writers (sellers) will be debited. (Note, for share consolidations, it is possible for a LEPO taker (buyer) to be debited if the LEPO strike is adjusted back to 1 cent after initial rounding).

Exercise Restriction

Exercises of PDN ETOs will be restricted on the last day of trading of pre-consolidated shares on Wednesday, 10 April 2024.

OTC series

Any OTC series cleared by ASXCL under the ASX Equity OTC Clear service will be adjusted using the same formula as the ETOs as shown in this Notice.

To maintain anonymity, the adjusted OTC series details will not be published in the Notice but will be available to clearing participants the following morning via their own clearing systems.

ETO exercise restrictions in relation to an adjustment may occur during the period of 10 business days prior to and including expiry and will also apply to OTC series. However such exercise restrictions will not apply on expiry day of an OTC.

What do I need to do by when?

Specific Cover

Due to deferred settlement period and until the registry has completed the conversion, specific cover will not be acceptable. All specific cover will be converted to general on the night of the adjustment.

Specific cover will be available post consolidated period.

A further notice will be issued after close of trading, Wednesday, 10 April 2024 which will list the adjusted series.

Need more information?

Issued by

Greg Fitzpatrick, Senior Manager, Clearing Operations

Contact information

William Ward

clearing@asx.com.au