OTCPK:RKNLF - Post by User
Comment by
MatWeion May 30, 2014 3:11pm
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Post# 22616145
RE:RE:RE:RE:RE:Redknee Announces Normal Course Issuer Bid
RE:RE:RE:RE:RE:Redknee Announces Normal Course Issuer BidYeah, I would tend to agree that it's an odd move coming only a few months after the financing. It just cancels it out, effectively - 13M shares issues (over-allotment was never exercised; stock price never got near the issue price after it closed), now potentially 10M being bought back. I'm pretty sure this normal course issuer was done under pressure from the syndicate to do something about the price. I think they probably began filing when the stock was in dumpster just at the beginning of last week (seems like years ago huh) and events simply overtook them.
Having said that, keep in mind that 9M (10% of float) is simply the maximum allowed under securities regulation to be bought back under the normal course bid. Makes sense to file for the maximum for the most flexibility. It's up to the company to buy when they choose - and it's possible - even likely - that only a small amount of shares will actually be repurchased. Will be interesting to see what the float is like over the coming months.