Eric Coffins turnFrom his latest HRA edition.https://www.hraadvisory.com
Sunridge Gold (SGC-V; $0.25)
hasn’t issued further news releases but the latest
MD&A that forms part of the Q3 financial filing does
add bit of color to the takeover
news. Management confirmed that the plan
is to wind up and dissolve the company and
that it expects the payout per share to be at
least $0.35 in the form of two return of capital disbursements.
The exact amount will depend on how many warrants and options
get exercised. Assuming the buyout passes
a shareholder vote in January the first dis-
bursement will take place soon after, concur-
rent with the delisting of the shares and
tradable warrants.
As far as I know this is going to happen and
the stock continues to trade at a 30% plus
discount to the final payout amount. There’s
your arbitrage if you’re confident the deal
will close. I think it will but can’t give you
odds. Some traders are playing this with the
tradable warrants but there isn’t much mar-
gin to be had there. Even if you get the war-
rants at the current one cent bid the payout
will have to be at least 36 cents for you to
break even. Not for the faint of heart, that
trade. If you want to try and capture the ar-
bitrage the shares seem like the safer bet.
www.sunridge.com
Hey ilovetojumpem1 you and HRA seem to share a similar view point!