BLACKROCK Municipal Income TRUST V.BFK.P

Primary Symbol: BFK

BlackRock Municipal Income Trust (the Fund) is a diversified closed-end management investment company. The Fund's investment objective is to provide current income exempt from federal income taxes. Under normal market conditions, the Fund invests at least 80% of its managed assets in investments the income from which is exempt from federal income tax (except that the interest may be subject to the alternative minimum tax). The Fund may invest directly in securities or synthetically through the use of derivatives. The Fund's investment policies provide that it invests at least 80% of its total assets in investment grade quality municipal obligations issued by or on behalf of states, territories and possessions of the United States and their political subdivisions, agencies or instrumentalities, each of which pays interest that, in the opinion of bond counsel to the issuer, is excludable from gross income for federal income tax purposes. Its investment adviser is BlackRock Advisors, LLC.

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BLACKROCK Municipal Income TRUST > Why 8 to 1 and not something smaller like 2 or 3 to 1?

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Comment by leo101on Oct 30, 2020 12:35pm

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Post# 31813532

RE:RE:RE:RE:RE:RE:RE:Why 8 to 1 and not something smaller like 2 or 3 to 1?

you think there's only one financing in the future? say hi to the easter bunny for me. they need a higher share price to work their way through several financings which will all take place at a lower price than the previous share issue.

Rothchildish wrote: You're pretty dense are you? The financing is done on a $ target. If they want to raise 100M$, they would need to add 125M shares at the current price (0.80). If they did it post R/S, it would still be the same thing, 15.6M shares @ 6.40. The finality is 100M$. What will be funny is the superb graph showing that this stock was once 100$/shares and is now trading at 6$. Wow the sight. Also do not forget, the middleman will take a huge chunk (probably 5% of the amount). A beautiful 5M$ out of the window.

leo101 wrote: mgt wants the price of the consolidated shares to be as high as possible so they can keep doing financings to fund operations. i think the story that it's to protect the u.s. listing is misdirection, the bottom line is these guys are retooling to start issuing more shares to fund money losing operations.