The following additional requirements apply to an offer of company warrants or other convertible securities by way of a rights issue or bought deal:
(1) The issuer's announcement of the rights issue or bought deal must include either:
(a) the exercise or conversion price of the company warrants or other convertible securities, or
(b) a price-fixing formula to determine the exercise or conversion price. The price-fixing formula must not contain any discretionary element and the amount of premium or discount (in relation to the underlying share price) must be specified.
(2) Where a price-fixing formula is adopted:
(a) if the issue is not underwritten, the issuer must fix and announce the exercise or conversion price before the close of the offer; or
(b) if the issue is underwritten, the issuer must fix and announce the exercise or conversion price before the commencement of nil-paid rights trading.
(3) An offer of company warrants or convertible securities by way of a bought deal must comply with Part V of this Chapter.