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NORTHERN BLIZZARD RESOURCES INC T.NBZ

"Northern Blizzard Resources Inc is engaged in the exploration, acquisition, development and production of petroleum and natural gas reserves in western Canada."


TSX:NBZ - Post by User

Comment by xbox360on Jan 11, 2017 6:25pm
214 Views
Post# 25696629

RE:RE:RE:TonyDj

RE:RE:RE:TonyDjDeadline for issuer bid approaching, I wonder if everyone or anyone tendered their shares.
The second largest shareholder changed their position after the initial announcement and I thought the largest shareholder NGP may also change their position if more than 15% of total shares were tendered by other shareholders prior to January 20th. However, on a second thought, if that was to happen then the company may face a liquidity problem (in publicly traded shares) due to two majority shareholders holding about 84% of the total shares at the end. ie. if 15% was tendered without the two participating. 71.3% / .85 = about 84%. So, I guess it is in the best interest of the company and all the shareholders for NGP to tender its shares at least.

Anyway, still the arbitrage opportunity available for shareholders. The company could have done this two ways, one is what is being offered and the second was to buyback shares in the public market. The second one would've increased the share price over $4.
The arbitrage for the current plan is that since the share price is still below $4, I could tender for the bid and then buy back the exact same number of tendered share on the market at the lower price if it stays below $4 after January 20. Share price probably won't go past (above) $4 until January 20, yet I am not sure what will happen after.
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