CanAsia Energy Corp V.CEC

Record Date and Effective Date

[101OilMan]

The record date is Feb 2, 2022 and the effective date is Feb 10, 2022. I implied that we need to hold our shares until the effective date in order to get the ROC. Am I correct? If people sell their shares today, they won't have an entitlement on the ROC. I guessed.

[Sudirman2]

This should help: The distribution to shareholders will be made in accordance with the “due bill” trading procedures mandated by the TSX Venture Exchange for large dividends and distributions. The purpose is to result in traded shares carrying the value of the $0.40 distribution until it is paid. A due bill will notionally represent the $0.40 distribution that a holder of a Pan Orient share

[badboard]

I think it works like this... If you were owner of shares on Feb 2, you will get the distribution. No one else. If you bought shares Feb 2, you will not get the distribution as it settles on Feb 3. The record data is Feb 2.  The effective date is the effective date for the reorg of the company and payment.  I'm surprised the share price hasn't fallen.  This is how it works

[Sudirman2]

My opinion is a bit different.  The "due bill" attaches to the share as of Feb 2. Unitl Feb 11 any sale/purchase comes with the 'due bill'.  Other wise there would have been a corresponding 40 ish cent drop as of Feb 2. I woudl expect that drop to come Feb 11 , once the shares are ex-distribution.    Not a securities lawyer and I dont play one on tv, so

[Sudirman2]

ANy one care to chime in on ACB ex-distribution and who calculates that ?

[bullhorn3]

I think you are wrong. Here is the key statement: "The purpose is to result in traded shares carrying the value of the $0.40 distribution until it is paid." So, until Feb 11, shares traded carry the $0.40 distribution with them. That is the reason the SP has not dropped. The drop should occur on Feb 11.... at least that is my opinion.