RE:RE:RE:RE:RE:RE:RE:RE:RE:Maybe LIX takeover will pass!Dtraders1 wrote: About the 20%, I was reading the news (Jan 17,2018) of AAB when they acquired stock in TM and they say "Aberdeen has covenanted to not exercise any warrants if such exercise would result in Aberdeen holding 20% or more of the outstanding common shares." Does this has to do with the 20% takeover rule? A little bit confusing when I read all the canadian rules for a takeover and with all the definitions and exemptions. Also there ceased to be insider last year when their warrant expire and where under 10% so are they now back as insiders?
Yes they're insiders again in Trigon, which I believe they became again during the last private placement last Summer. This recent $500K only increased their position. There are legalities associated with the 20% rule, as I've seen AAB promise not to cross the threshold in other holdings after PP's and the such. Basically, its customary for them to acknowledge this, and I've seen it in other companies as well over the years.
I'm not all that well-versed in the rules and regulations surrounding the 20% rule. Like RD, I've also noticed that some stocks are held by insiders in much higher percentages than 20. I believe it depends on how it occurs. I'm curious for AAB, now that Stan owns about 20%, I wonder if the company completed its NCIB, and that pushed him past the 20% threshold, is that "allowed?" I have no earthly idea, so perhaps others on this board with some better understanding of the rules can help out.