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ECN Capital Corp T.ECN

Alternate Symbol(s):  ECNCF | ECNNF | T.ECN.PR.C | T.ECN.DB | T.ECN.DB.A | T.ECN.DB.B

ECN Capital Corp. is a Canada-based company. The Company is a provider of business services to North American banks, credit unions, life insurance companies, pension funds and institutional investors (collectively, its Partners). It originates, manages and advises on credit assets on behalf of its Partners, specifically consumer (manufactured housing and recreational vehicle and marine) loans and commercial (inventory finance or floorplan) loans. The Company operates through two segments: Manufactured Housing Finance, and Recreational Vehicles (RV) and Marine Finance. Its business segment includes Triad Financial Services, Source One Financial, and Intercoastal Finance Group. The Triad Financial Services is a portfolio solutions platform focused on originating and managing longer duration secured consumer loan portfolios for active partner. The Source One Financial originates prime and super-prime loans to consumers to facilitate the purchase of recreational and marine vehicles.


TSX:ECN - Post by User

Bullboard Posts
Comment by ArbProfiton Mar 29, 2018 5:25pm
105 Views
Post# 27805691

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Dutch Auction

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Dutch AuctionThe Dutch auction does not guarantee anything other than getting approx 10% of your position sold at $3.49, if every share is tendered. How many shares will be tendered is anyone's guess, as I've seen these SIB's have anywhere from not enough shares tendered at all, to virtually every outstanding share tendered.

If more than 32,951,289  of the outstanding shares are tendered at $3,49, then you'll get a prorated number of shares sold at $3.49. This then leaves people holding the remainder of their shares, which typically causes a post-auction decline. 

That being said, I think selling before the deadline, below $3.49 is a bad idea.  The number of shares being purchased is substantial enough that we'll likely/hopefully get a higher price.  

The company can also cancel the purchase.  Point being, there is still risk that can justify selling for some.  There is definitely a valid point that many sellers are not aware of the auction, which gives those paying attention an advantage.  

I have a substantial position and will likely pick up more next week at these prices, since the risk decreases as the deadline gets closer.

GLTA






Bullboard Posts