321PMAC wrote: Bruce Campbell, fund manager of both the Redwood Equity Growth Fund (~$30.7m) and Redwood Income Growth Fund (~$13.5m), is the largest public institutional investor to hold a position in TGIF to date.
As the primary participant of the non-brokered private placement of convertible debenture units, which closed October 5th, 2017, Bruce subscribed to 800 units at $1,000/unit for a total initial subscription of $800,000. A unit consists of 4,000 common shares and 4,000 common share purchase warrants, each of which is convertible and exercisable at $0.25/share.
The convertible debenture units had a mandatory minimum 4 month hold prior to conversion; February 6th was the first day of conversion eligibility.
In the 6 days of trading that have passed since February 5th, Redwood Funds have disposed of almost 25% of their total common shares.
Allocation of Redwood Funds can be viewed here:
Redwood Equity Fund Redwood Income Fund A comparative analysis of the initial investment value relative to the current allocation can be found here:
Redwood Fund Analysis Of additional note - the quantityof warrants exercised is not trackable, further inference towards the extent of warrants exercised and disposed into market will require a subsequent Form 7 and/or Form 9 filing on behalf of TGIF. If I was to speculate, all 3.2m warrants have been exercised and disposed of for a ~300% immediately accretive gain.
The obvious question is why?
Why would an institutional investor, the largest TGIF public subscriber to date, and a personal acquaintance of several TGIF directors, be disposing of such a substantial percentage of their holdings?