Post by
BlueJay2020 on Feb 10, 2021 12:56pm
SIR Corp. Announces it's No Longer Proceeding with its Offer
Not really a huge surprise - so what now?
Comment by
Robsopinion on Feb 10, 2021 1:07pm
Since none of us were going to tender to it anyways, what's the difference? we sit back, wait and hope. Just remember there are two sides to the company. The royalty stream which we own, and the operations part that the Fowler's own. We go to zero, it means that they go to zero also. It's in their best interest to get these stores pumping out sales as soon as possible.
Comment by
logicandinertia on Feb 10, 2021 1:14pm
You really have to laugh at the timing, just a day before unit holders can opt-in or opt-out of the third party $4.75 mini-tender. they clearly aren't happy with that third party mini-tender offer...
Comment by
Fabozzi on Feb 10, 2021 1:50pm
Just a big FU to Royalty sharesholders.
Comment by
BlueJay2020 on Feb 10, 2021 1:56pm
Still talking about 'hopefully' making it through the pandemic in the same press release as withdrawing a proposed offer equating to almost $25M for the rest of the Trust because they realised no-one was dumb enough to accept it.
Comment by
jcw604 on Feb 10, 2021 3:23pm
It is doing a favor for Janes food so that they can get their shares.
Comment by
flamingogold on Feb 10, 2021 3:56pm
Janes vs. Fowler playing chicken... who will bok bok first... sorry couldn't resist.
Comment by
babedinkleman on Feb 10, 2021 7:44pm
This post has been removed in accordance with Community Policy
Comment by
BlueJay2020 on Feb 10, 2021 8:50pm
If that's what you intend to do, I'd tender the whole lot, and then buy back a chunk of the shares when they have drifted lower? The other reason to do that is that if you only tender, say, half your shares, you might only end up tendering half of those, so you will have 75% left. Talk about messy!
Comment by
jcw604 on Feb 10, 2021 11:19pm
Assuming everyone tender their shares, since Janes already have 1/10, the prorated ratio would be 1/9. However, if less than 10% of people tender their shares, the prorated ratio would be 1. From the trading volume, it seems a significant portion of holder are not trading this stock and most likely they will not tender their shares, since they are those holding it for the long term. JMHO.
Comment by
BlueJay2020 on Feb 10, 2021 11:35pm
Of course, SIr Corp will presumably not be tendering the 20% they own, so that would make it, at most, 1/7.
Comment by
jcw604 on Feb 11, 2021 10:51am
If they tender that and have more cash, they may be out of the covenant violation, they will have to start paying dividends to us.
Comment by
jcw604 on Feb 11, 2021 9:09pm
Now, it will be 100%, because they are not even getting all they wanted. I don't know if my tender get accepted, because I am with CIBC and when I phone them this morning, they said they really need 2 days advanced notice and I request is only best effort basis.
Comment by
lostcauses on Feb 10, 2021 9:42pm
SIR reminds Fund unitholders that the timing of any resumption of monthly distributions is uncertain Well bully us all you want SIR, but I dont think so. Once the restrictions are lifted there is nowhere to hide any more. Not to mention we have Janes (~100k monthly distributions) and the trustees on our side, which will start legal action due to contract breach in due time.
Comment by
jcw604 on Feb 10, 2021 11:10pm
The other creditors that have higher priority, then the unit holders. However, unless they go bankrupt, they would still need to eventually paid us back with what they owe us, before they can bank the money into their profits. It is a sad story more for them than us, because they are the last one in the priority list.
Comment by
jcw604 on Feb 11, 2021 10:48am
You have to option to keep your distribution but let the bank unforgive their violation of the covenant. The trustee have on behalf of us probably allow them to deferred the distribution. Once they met the covenant with the other lender, they will have to pay us back.