Follow-up: FTQ's convert from prefs...Response received this morning (attached below) re my query for additional insight/ background on FTQ's conversion. The source of the response has requested to remain anonymous. I can assure you there are few as credible as this source in regards to the subject matter.
rg
disclaimer: information conveyed is an opinion only, not a recommendation.
P.S...please don't bother guessing who is the source as I have to respect their request for confidentiality.
The FTQ has been able to convert their prefs for some time now. There was a conversion schedule for the pref shares, whereby the number of common that they could convert to became fixed at the 6.2M or so common shares – I believe that point was hit a while ago. There was also another point where as the stock price for BNC increased the number of shares to convert into begin to decrease. So, this was an optimum time for them to convert the shares. They still convert to receive their 6.2M shares and automatically get the bump (if I recall it works out to about $1.38/share for them). To my knowledge the FTQ fully supports BNC and seems to be quite content with their shareholding. There is no impact to common shareholders. This cleans up the capital structure for the company and so it has some positive benefits.
The original pref share agreement should be in the public domain – it’s from 2004. I’m not in the ofc this morning but can chat this afternoon. I’ll see if I can find you the original agreement when I get in – I can’t recall how much of the agreement is redacted.