RE:RE:Similar Arbitrage situations Thanks Quantum ans Wilwal,
Thats exactly what I needed... I'll check out their case when I get a second... Look at the spread and such to get an idea. The time lapse for the required receipt and approvals.
If anyone has similar cases, please send me the info. Especially the ones that FAILED!
WIlwal, my position in LRE was aquiered with debenture in early January. I've enjoyed a nice upside since and will keep it to the end unless I feel it will fail... Which, like you guys, I don't think would as I believe the probability of closing are still very high now.
However, I do like the risk if it does fail. We'd be looking at an immediate 80+% drop if not 100%!
The upside on LRE is 15.56% for the common stock (if you could purchase at .45 canadian) and 23% for the debenture, (if you can aquire at 65 face value).
However, SGC as a 33% upside if you can aquire the warrants at 0.015 (However, no sellers are on the horizon at that price)... and on the common stock, it`s still quite vague as we are waiting for the whole liquidation process and its very dependant on the value on the canadian dollar at the closing date.... But one can assume a 20.68% return if you can purchase at 29 cent and get a liquidation price of 35 cent (all in CAD again). One can however expect an easy extra 5 to 10% on this as 35 cent is what management is saying the minimum payout would be and we could theorically be looking at 38 or so.
More importantly to me, the downsize risk is much more limited with Sunridge as the stock will NOT go backrupt if the deal fails... The shareholders would keep their mining licences and still be able to benefit in the long term, probably a lot more than with this quick liquidation deal. All that to say, you get to keep the stock which is worth something as opposed to LRE.
I was interested in adding to my LRE position, but have only added in SGC personally for the reasons above.
Anyways, back to subject I just want to get cases of canadian company being purchased by Chinese compagnies to get an idea of the process elsewhere and would very much like to find failed deals to get familiar with the events or language prior to a deal failing so I can have a cue as to when to jump out if needed.
Bookends