TSX:ONR.UN - Post by User
Post by
4funon Nov 01, 2011 8:50pm
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Post# 19200415
Oct 31 / Nov 1 - Nov 7 dates
Oct 31 / Nov 1 - Nov 7 datesFrom a legal and accounting point of view, all the assets that Posiedon will receive from Open Range are transfered (closing balances Oct 31) as the opening balances Nov 1 to Posiedon. The new Open Range and Poseidon now carry on business (sales, collections, contracts etc). However trading of the shares continues as before. On Friday the shares will trade as two separate companies.
Where it gets confusing for us all is the fact that we are all conditioned to an ex dividend date which set the division between those getting a dividend and those who don't. The arrangement was made as a tax free event so there is no actual dividend and no ex dividend date. Where it gets tricky is the fact that the New Open range shares trading on Friday have the same symbol ONR. This is ridiculuos and leads to confusion. They should have changed the symbol of New Open range!
It takes three days to settle a trade. Someone buying the old ONR on Thursday should get the new shares ONR and .8839 shares Poseidon/ each old share delivered to his account in three days. What happens during these three days? It is very confusing for investors since the symbol remains the same.