Crius Energy Trust Tr Unit CRIUF

RE:RE:RE:RE:Dividend and Dilution

[Bluefin646]

go read the definition of a green shoe.  You clearly do not know what that is, nor how it works. 

Let's use another example.  Let's say I own 10,000 shares of KWH prior to the deal.  What is my ownership in the parent?  10,000,000/10,000 = .001 interest in the 26.7%, or .0267%, yes.

What is my ownership position after the secondary?  15,900,000/10,000 = .00062893 interest in the 42.7%, or .026855

The KEY to the entire question is that unit holders ownership of the entire entity INCREAESED from 26.7% to 42.7%.  If that did not occur, like a normal secondary, then dilution takes place.  But because unit holder ownership increased by an EQUAL amount to the deal size, there was a net effect of ZERO dilution.

And again, the dividend is a wash, b/c BOTH PRIVATE and PUBLIC owners receive the same monthly dividend.