RE: RE: RE: pref A, B, conversion/value -- a taleAre you sure?
What it says is this:
"YPG Holdings may, subject to applicable law and, if required, to regulatory approval, exchange all, or from time to time any part, of the then outstanding Series 2 Shares into that number of Units or New Tradable Securities determined (per Series 2 Share) by dividing the then applicable Redemption Price, together with all accrued and unpaid dividends up to but excluding the date fixed for
exchange, by the greater of (i) $2.00 and (ii) 95% of the weighted average trading price of the Units or NewTradable Securities, as the case may be, on the TSX (or if the Units or New Tradable Securities, as at the case may be, do not trade on the TSX on the date specified for exchange, on the exchange or trading system with the greatest volume of Units or New Tradable Securities, as the case may be, traded during the 20 day period referred to below) for the 20 consecutive trading days ending on the fourth day prior to the date specified for exchange, or, if such fourth day is not a trading day, the immediately preceding trading day. Fractional Units or New Tradable Securities, as the case may be, will not be issued on any exchange of Series 2 Shares, but in lieu thereof YPG Holdings will make cash payments."
There is no provision about the price being > $2.00 and in fact that's why I think they mention "by the greater of (i) $2.00" at all. Should it be less than $2.00, I think what they're say is the most you'll get is 12.5 common shares even if you need more to make up your $25 pref price.
If you've got confirmation otherwise, I would love to hear it because, if so, I'm buying some series 1 and getting my virtually guaranteed double + a dividend. However, I was pretty sure of my understanding on this and Washington post seems to agree.
If my understanding is correct, a corollary of all this is that there is going to be some interesting trading of the commons in and around March... another reason why I'm in the commons.
Here's the WSJ article link:
https://online.wsj.com/article/SB10001424053111904900904576554551688917430.html
Please let me know what you conclude because it makes a big difference on my perspective on preferred A shares. Some of this stuff reads link tax forms!
Mark