Fyi..........let's hope for the best. Norman Macdonald, who manages an energy portfolio of about $2 billion at Invesco Ltd., is urging his fellow shareholders to vote against the equity issuance at a meeting next week in Calgary.
“I’m shocked,” he said, adding that he was disappointed that the proposed plan hasn’t generated more vocal resistance from shareholders. “I get a sense some institutions have never withheld votes from the board and management. I seriously think some don’t know what it’s all about. It’s sad.”
Painted Pony said in March it would issue 41 million of its shares at C$5.60 apiece to finance the acquisition of UGR Blair Creek, which valued the equity portion of the deal at the time at about C$229.6 million. The shares have since fallen 11 per cent from that level to C$4.89, valuing the equity portion of the deal at about C$200 million.
Because the share issuance amounts to more than 25 per cent of the company’s total outstanding stock, it’s subject to a shareholder vote that will be held on May 11 at the company’s annual general meeting. For the transaction to proceed, Painted Pony needs a majority of shareholders who cast a vote to support it, the company has said.