Liminal BioSciences Inc. PFSCF

RE:RE:RE:RE:RE:Rights offer , timing and Prometic

[aldo451]

Hi Cubalibra,

are you certain about this statement: brokerage houses will have the new shares and will be trading them long before you get yours.This doesn't sound right.

I would think that all new shares will be made available for trade on the same date for everyone, after they announce the closing and details of the rights offering...I could be wrong.  

Cubalibra wrote: No problem. Have edited my list a little, and spaced it out....have a look.

wyndewest wrote: Cubalibra,
Thank you for your very detailed answer.  You have made the entire rights offericlear to me. I was not sure about Consonance Capital. Looks like we are being kept in the dark about their particpation or NOT.  Why would these pople (TV etc.) do something like that?  They really must NOT WANT the retail investor to participate.  It makes me wonder if TV and Consonance were required to have a rights offer in order to proceed with their restructure plan. ie. get the heads up from TSX etc.  Anyway, thanks again.

Cubalibra wrote:
1. If only the original approx 750 million shares are eligible for rights, and there is 100% demand, you will get 6.667 shares for each 1 share you own on the Record Date.

2. If there is only 250 million of those original shares asking for Rights, you will get 20 new shares.

3. Anywhere between 250 and 750 million shares asking for 20 Rights, you will get between 6.667 and 20 new shares.

4. If the newly acquired 3 billion Shares negotiated by Consonance Capital are eligible for Rights it will depend how many they Commit to the Rights offer. If they committ all 3 billion, there will be 75 billion total demand and only 5 billion to be issued, so you will get 1.333 new shares for each one you own on the Record Date.

5. If CC only asked for a portion of those 3 billion Rights, then you will get between 1.333 and 6.667

6. You won't know how many shares you received until after they make that announcement, a week or so after the Rights Closing Date, and long after you committ enough cash for 20 new shares, if that was you wish.

7. You will wait between 2-3 weeks after the close of the Rights offer is my guess, before shares show up in your account. Others, like brokerage houses will have the new shares and will be trading them long before you get yours. Because that got likely hundreds of millions at 1.5 cents, you can bet they will sell, sell, sell, if the price is 3 or 4 cents, and by the time you get yours, you will be lucky if it is above 1.5 cents. 

8. You will wait at least a month to get your unused committed money returned to you. So if you have 50k shares on record date and want your million shares, you commit your $15210 and then if CC puts their 3 billion in the pot, you will only get 66650 shares instead of a million, so your cost is only $1011 and your $14199 (minus commission) will not get returned to you for at least a month.

9. They have already asked for permission to issue another 3.5 billion shares for executive compensation, so that will be 28 billion total. When they go to Nasdaq, they will issue another 5 - 10 billion shares there, so look for a total of about 35 billion before the 1 for 1000 Reverse split. A Market Cap of $3.5 Billion, will be only 10 cents per share, and that will be a new high for Market Cap, so everything has to go right to get there. If the MC is $7 billion in 3 years (20 cents per share) I will be really really surprised. Dumbfounded really. Remember, TV an CC only need 3 cents to double their money. It will be tough getting above that - FDA will have to be super kind!!

10. I dont see what is so difficult to understand. It's only math, and any way it goes, it equals = We are phuucked.