Shares in River Global (LSE:RVRG) fell 50% to 3p after the company issued new D Ordinary Shares as part of a long-planned return of capital to shareholders.
The drop is largely mechanical, with the A Ordinary Shares marked ex-entitlement from the start of trading once the new shares were issued at 8am.
The issuance follows a capital reduction and return of capital approved by shareholders on 25 June, set out in a circular published earlier in the month.
With the entitlement now stripped out, the residual value of the A shares rests on a handful of components.
The first is a holding of consideration shares in Liontrust Asset Management (LSE:LIO) retained for the benefit of A shareholders following the return of capital.
River Global intends to distribute Liontrust shares with an aggregate market value of up to its merger reserve balance of £8.72 million, measured as at 28 July, keeping any excess for A shareholders.
The second is cash released to the company on completion of the disposal of River Global Holdings, along with any dividend due on its Liontrust shares.
The company expects to retain more than £2 million in cash, funding annual running costs estimated at around £400,000, before a number of exceptional charges.
The third component is an entitlement to up to 820,721 contingent consideration shares in Liontrust.
That award depends on the revenues delivered to the enlarged Liontrust group within twelve months of completion, following a proposed reconstruction by European Opportunities Trust.
EOT shareholders will be offered the chance to roll over into a new fund managed by the enlarged Liontrust group, with take-up determining how much revenue is generated.
The final component is a cash contribution due from holders of the company's B shares on a future realisation of their interests, which stood at about £812,000 at the end of March.
