LAKE SHORE GOLD CORP 6.25 PCT DEBS T.LSG.DB

Only LSG Halted..............

[ub40eh]

I checked IIROC and it's only LSG Halted... "Reason: Pending News " I'm thinking maybe it's NEWS. if it was a merger or buy out perhaps another company would be Halted as well. Hmmm? https://www.iiroc.ca/news/Pages/Halts-Resumptions.aspx

[borne2run]

If there is not a final deal in place, there is no need to halt Tahoe (speculation). I expect LSG will be halted the rest of the day with a news release after 4 PM. If there is no final deal, then I expect Tony to announce that they are in discussions regarding a possible friendly merger. Question - off the top of your head, does anyone know the conversion ratio for the debs if a takeover occurs

[bigdaddycash]

the convesion of the debs on takeover is based on a formula in the prospectus.  it consider the actual date of the deal closing.  for example, if the deal closed on 5/31/2016 then the conv rate would be 1.31 (instaed of 1.40) if my calcs are correct.  

[borne2run]

Thanks Big Daddy, your calculations make sense. Trading at 114, and assuming a conversion price of 130, buyers would need a share price of about 148 to break even. So, the debs and shares were trading today based on a buyout / conversion scenario. Debenture holders would also accrue some interest up until buyout / conversion date.

[stinkbid]

Agree 100% with your buyout thoughts, guessing someone else will step in and this will end in the $2.30-$2.45 range.

[bigdaddycash]

born2run, looks like you are correct that LSG may be halted for remainder of session.  been over an hour and no news.  that would give them the weekend to hammer out details if there is a deal in play.  gold is performing very well in CAD so that could be to our advantage if gold closes strong.