RE:RE:CVRIt is not just a case of choosing to participate in the CVR; you need some pretty serious coin behind you to qualify. You must be an accredited investor under the terms of Schedule B, that is, investing at least $150,000 in the placement, earn $200,000 per year or have a million dollars in financial assets (or any of many other professional investor categories).
That pretty much excludes the small guy, so this time I'd say the hyenas, weasels, and wolves have managed to squeeze out most shareholders. And, even if you are well-heeled, you have to think hard about sending new money into this pit.
Many of us ran with the wolves on the first CVR because it gave us a reasonable bite out of the potential settlement. That CVR portion is now down to 23.5 percent of $460 million US potential settlement payout.
If you hold only shares, you are down to potentially about 40 cents Canadian based on the $30 million possible payout to shareholders, plus anything left after everyone else higher in the waterfall gets taken care of. So is it worth holding for 40 cents? I don't know, but I guess I'll wait another year and see what happens.
As for participating in this latest funding, the same argument applies as last time: it is the only way to get a fair shake on a potential payout. The payout on the original CVR has certainly gotten trimmed back.
Just to be clear, by wolves I mean the shareholder dissidents who stepped up to get us a slice of the original CVR...by hyenas, obviously that would be Tenor. And weasels, that would be Anna and Mark...Mark whom I thought resigned with surprisingly little fuss, and now I believe we have discovered why: he was part of this behind-the-scenes sellout of EOM for 4 cents Canadian a share. So while the wolves have joined the weasels and hyenas, at least the wolves got us something as opposed to the big, fat nothing we would have had under Anna and Mark's little scheme.