Question regarding 2016 takeover of St. Andrews GoldHi all,
Last month I discovered an old stock certificate I had for St Andrew's gold for 5,000 shares. I know in 2016 they were taken out by KL so I went about the process to receive my KL shares. My concern is that TMX services only sent me 21 shares of KL. I was reading the transaciton details for the takeover:
Under the terms of the Agreement, common shareholders of St Andrew will receive 0.0906 of one common share of Kirkland Lake (the "Exchange Ratio") for each St Andrew common share held. The Exchange Ratio represents the equivalent of C$0.47 per St Andrew common share, based on the closing price of Kirkland Lake on November 16, 2015. The Exchange Ratio implies a 46% premium based on both companies' 20-day volume-weighted average prices and a 25% premium to St Andrew's closing price, both as at November 16, 2015 on the Toronto Stock Exchange. The Exchange Ratio implies a total equity value of approximately C$178 million on a fully diluted in-the-money basis. Therefore I thought that I would receive 453 shares of KL. (5,000 X 0.0906). I emailed TMX services and they responded saying
Name: St Andrew Goldfields - Old CUSIP: 787188408 Exchange: 20 FOR 1 St Andrew Common Share CUSIP 787188507
Fractions: Fractions are rounded up or down at 0.5
1 St Andrew Common Share 787188507 FOR 0.0906 Kirkland Lake Gold Common Share 49740P106.
Fractions are rounded down.
I am not sure where the 20 for 1 clause comes in... I am missing something? Or is the TMX screwing me?