RE:RE:RE:record dateBGraham wrote: Bobtheknob2;
Yes, my question was "at what point do you need to be holding cke shares to be considered eligible to receive the craft shares. I thought, mistakenly i guess, that only cke shareholders as of a certain appointed date would be eligible for the craft distribution.
So your saying that even shares of cke bought right up to the day before any transaction would receive their pro rata amount of craft shares - is that correct?
It is a hard question to speculate on at this stage. Here is the reason why.
Because we have not seen the information circular we do not know what the arrangement will look like, except in general terms.Here is the text from the press release describing the Arrangement.
Pursuant to the Arrangement, each issued and outstanding common share of Chinook (“Chinook Share“) at the time the Arrangement is completed, which is currently anticipated to occur on or about December 13, 2016, will be exchanged for one (1) new common share in the capital of Chinook (a “New Chinook Share“) having the terms set forth in the Plan of Arrangement (as defined below) and a pro rata entitlement to an aggregate of 152,251,953 common shares (“Craft Shares“) in the capital of 1947577 Alberta Ltd. (to be renamed Craft Oil Ltd.) (“Craft“).
What does this mean?
We can use an example of a dividend paying stock where there is an ex-dividend date which is set by the coard of directors. Those shareholders as of that date, will be entitled to the dividend for that period.
We can then speculate that probably one will need to be the shareholder of record, based on the contents of the news release, on the date prior to December 13 (whether one owns the shares outright or has acquired them prior to that date, but the transaction has not cleared). Of course attached to the shares of any share trading prior to the ex-dividend date is a right to that dividend.
So since have now talked about dividents. This opens another question which is, will the Craft shares be spun off as a stock dividend?
Once again we don't know the answer to this until we see the Information Circular and can determine from it whether the Craft shares will be treated as a stock dividend or whether it will be treated as a split. Havin said that the press release does state the term split with Newco Shares and Craft shares for each old share.
Regardless of that we do not know with certainty if there will be a record date for this transaction.
We will find out the answer to this probably within the week, once the document has been uploaded to Sedar. Granted I have not checked to see if it has been posted, so maybe it is already there. There was no mention on the Chinook Energy website a few minutes ago.
We don't know that at this stage.