Non-Renounceable Right

Non-Renounceable Right

A right that a corporation may sell to shareholders (but that shareholders may not sell) giving them the ability to buy more shares in that corporation at a discount to market value. Companies usually issue rights in conjunction with new issues of stock, which would dilute current shareholders' holdings if not accompanied by rights or something similar. Non-renounceable rights put shareholders in the position of either taking advantage of the rights or allowing one's shares to be diluted. It specifically precludes the possibility of the shareholder making a profit from the sale of the rights.
References in periodicals archive ?
There are two types of rights issue, renounceable rights and non-renounceable rights. A non-renounceable right is non-transferable.
The shares to be issued form part of the shortfall of Traka's recent 1:3 non-renounceable rights issue and are being allotted at a price of $0.013 each, valuing the transaction at $390,000.
Bass Oil Ltd (ASX:BAS) directors have participated in the company's 1 for 2 non-renounceable rights issue which will assist the company in advancing its Indonesian-focused oil strategy.
Rimfire Pacific Mining NL (ASX:RIM) has placed $300,000 of the shortfall from its non-renounceable rights issue which raised around $500,000 before costs.
On 20 September 2016, Chinalco Yunnan Copper Resources Ltd (Company) announced a pro-rata, non-renounceable rights issue to eligible shareholders, on the basis of 1 new fully paid ordinary share (New Shares) for every 2 shares held, at an issue price of $0.006 per New Share, to raise approximately $1.77 million before costs (Offer).
The company has also undertaken a prorata, non-renounceable rights issue of one new share for every one existing share held at an issue price of $0.006 per share.
Sydney, Australia, Feb 10, 2014 - (ABN Newswire) - Platina Resources Limited (ASX:PGM) (OTCMKTS:PTNUF) is pleased to announce that it has today lodged with ASIC the Prospectus (Prospectus) for a non-renounceable rights issue to eligible shareholders, on the basis of 1 new option to subscribe for fully paid ordinary share for every 1 share held, at an issue price of $0.01 per option and exercisable on or before 30 September 2015 at $0.06 (New Options), to raise approximately $1.32 million, based on Platina's undiluted share capital (Rights Issue).
Release date- 18102012 - Zambezi Resources Limited has completed the non-renounceable rights issue on the basis of two fully paid ordinary shares for every three fully paid ordinary shares as announced on 20 August 2012.
QrxPharma has also launched a 1-for-20 non-renounceable rights issue, which, if fully subscribed, would bring additional proceeds of AUD10.4m.
The bank, with the BNM's approval, has also increased its paid-up capital via a non-renounceable rights issue.
Release date- 21082019 - Xanadu Mines Ltd (ASX: XAM, TSX: XAM) (Xanadu) refers to the ASX/TSX Announcement dated 10 July 2019, whereby it was advised that, as disclosed in the Non-renounceable Rights Issue Offer Document, Patersons Securities Limited, who acted as Lead Manager, and the directors of Xanadu, reserved the right to place any of the remaining shortfall shares at or greater than the rights issue price of $0.052 per share (Shortfall Shares).