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Maxar Technologies Inc. T.MAXR

Maxar Technologies Inc is an integrated space and geospatial intelligence company with a full range of space technology solutions for commercial and government customers including satellites, Earth imagery, geospatial data, and analytics. Its operating segments include Earth Intelligence and Space Infrastructure.


TSX:MAXR - Post by User

Bullboard Posts
Post by Optimisticon Feb 07, 2019 12:13am
155 Views
Post# 29330330

Canadian Shares will be Exchanged This Year for USA Shares

Canadian Shares will be Exchanged This Year for USA SharesMaxar has mentioned that they will be reorganiziong the shares later this year. Basically what this means is that they'll be exchanging all the Canadian shares for USA shares. So all of the shares will be traded simply on a USA exchange. The exchange ratio would be based on the currency exchange rate. Currently, this would equate to about 0.75 US shares per Canadian share. This is a good move for the company. About 50% of the total shares (i.e. 59.4 million) are Canadian shares, which is 29.7 million. So this would by calulation lead to a smaller number of US shares, which works out to 52.0 million US shares. This is good from two points of view. First, the book value goes up by 14%. Second, the amount of dividend payable decreases by (7.4 million less shares times $1.48 Canadian) equals CAN$10.95 million saved per year, or US$8.3 million. Both of these effects are good for the share price; all without actually having to buy back any shares using capital.
Bullboard Posts