RE: Selling Sino Shares in CanadaActually Aubagger, there are 272 pages to this "Information Circular" and you don't need to be a shareholder to read it, as it is on the GCX Website, and available to anyone for free. I know this, as I am in Europe right now, which explains why I haven't seen or read any of my "Circular", yet. But from the Website, I have managed to read up to page 53.
From what I have read so far, concerning this 4.4% Commission Fee, is on Page 21, section 3, under the question " If I tender my Golden China Shares to the Offer, can I receive cash instead of Sino Gold Shares? So as you can clearly see, this is for people who decide to accept this offer, but choose to accept cash instead of Sino Gold Shares. If you accept shares, then the price is between you and your Stock Broker. That is, whenever you decide to sell.
LINK (But it is also on the GCX's Website)
https://www.goldenchina.ca/uploads/Take-over%20Bid%20Circular.pdf
Now why would anyone do this? You first just have to look at the spread between what Sino Gold is actually trading at, on the ASX, and what we sell at, on the TSX. Mind you there is some risk factor involved here with this price, but Sino Gold closed at A$8.05, and a day ahead of our opening. We closed after them at C$1.45, and with much effort, I may add.
With our 4.5 share consolidation to Sino Gold's Shares, and with the average exchange rate from the current A$ to C$, the actual equivalent price we would be paid, on the expiration date, would be about a price of ~C$ 1.54. The difference between this C$1.54 and the current selling price of C$1.45 is ~6.2%. If this deal goes through, Sino Gold could also jump up in price, which I cannot add into this equation, as this is unpredictable.
But when I consider it cost me about 1.5% to sell today, and at anytime, this puts my total loss compared to Sino Gold's present selling price at 6.2% + 1.5% = 7.7%. But if I wait only one month, when this deal goes through, but still want to sell out all my shares for cash, and end up paying this 4.4% fee, I stand to gain 7.7% - 4.4% = 3.3%. And this is why someone would consider this and have patience to wait for it.
How one deals with their own shares is their own business! But what I will tell you is that a profit is a profit. Taking the easy and lazy way out is no way to make money on the Stock Exchange. It is the way of loosing it. I can only suggest that before you start this paper work, and consider the easy route, figure out what this is costing you first, then decide if it is worth your time and effort.
Contrary to everything I have said here in the past, as I do believe this is a good deal for us, and that Sino Gold is a great partner who is in the right place, (before us) and who has nothing but a very bright future ahead, I am also stubborn. As far as I am concerned, I own "AUC" Shares, and not "GCX" Shares, so they will have to fight me for them. In the mean time, I can still realize any appreciation they may receive through their share price increase.
I do stand to be corrected here though, on the Canadian Tax Law, as I only read the GCX Circular from the ASX. Yes, you will have to pay Capital Gains Tax, or Loss, if this deal goes through.
But it would be no different then if you sold a stock at a profit and then bought another one. So since this is quite normal, as I have done it several times, I still don't see what the big deal is on this yet. You pay as you go!
GB