Q: hello 5i:
regarding the subscription receipts: they are currently selling for less than the stock price. If I have this right, I can buy the receipts and then convert them to regular shares. Why would I not do that, rather than pay the current stock price?
thanks
Paul L
regarding the subscription receipts: they are currently selling for less than the stock price. If I have this right, I can buy the receipts and then convert them to regular shares. Why would I not do that, rather than pay the current stock price?
thanks
Paul L
5i Research Answer:
Yes; the receipts can be converted into common shares, and receive the same dividends, so interested parties can get stock cheaper via the reciepts. But.....if the recent acquisition fails to close, investors get their $$ back, and since issue price was $39.15 investors are taking a risk of a few dollars per share if the deal fails to close.