Some lucky Afterpay Touch Group Ltd (ASX: APT) shareholders have the chance to buy up to $15,000 of shares at a price 23% cheaper than today's closing share price.
Earlier this year, Afterpay's share purchase plan (SPP) was interrupted after receiving a notice from AUSTRAC on 12 June 2019 requiring it to appoint an auditor to carry out an external audit on its anti-money laundering and counter-terrorism financing compliance.
The Afterpay board decided to delay the SPP until Afterpay had considered the final audit report and its recommendations.
Today, Afterpay announced that it is re-instating the SPP for eligible shareholders to purchase new shares. Luckily for those potential investors, the issue price and terms will remain the same.
What that means is that shares will still be issued at the lower of $23 and the 5-day volume-weighted average price of Afterpay shares up to the SPP closing date. Only shareholders on the Afterpay register at 7pm on 7 June 2019 with a registered address in Australia or New Zealand will be able to apply for up to $15,000 worth of shares.
But, for those lucky investors it means they can buy up to $15,000 of Afterpay shares at a price ($23) that's 23% lower than today's price. The SPP remains small, it's capped at $30 million and Afterpay may decide to scale back applications at its absolute discretion.
Foolish takeaway
Being able to buy $15,000 of shares that are worth $19,500 sounds like a good deal to me. I'm not able to take advantage of this, but it's an early Christmas present for those investors that can. The offer opens on 12 December 2019 and closes on 17 January 2020.
