Final Short Form Prospectus is out
The Final Short Form Prospectus is out. My numbers weren't far off at all. I recommend everyone reads the document to find the answers to their questions.
The Rights Offering is for C$7,678,388,000 The RO will print 59,292,571,428 new Common Shares The Subscription Price will be C$0.1295 per Common Share Date and time of Record: KAT holders as at 5:00 p.m. (Eastern time) on November 22, 2019 (the "Record Date") One Right (the "Right") will be honoured for each Common Share held by registered holders Each Right entitles you to purchase 31.0858657370516 new RO shares The RO also qualifies for the distribution of the Rights as well as new RO shares and those Rights will be listed on the TSX under symbol KAT.RT for trading until 12:00 noon (Eastern time) on the Expiry Date.
So, yes, as I suspected, you can sell your Rights when they trade, or you can buy other people's Rights.
In the event that none of the holders of Rights other than Glencore exercises Rights and all of the Common Shares are issued, GLEN will acquire 59,292,571,428 Common Shares under the RO and will beneficially own 60,939,185,356 Common Shares representing approximately 99.6% of the then outstanding Common Shares.
I had calculated 99.3% so I wasn't too far off... it will all depend on how many Rights are paid for in cash by minority holders.
In the event that Glencore becomes the beneficial owner of 90% or more of the Common Shares of the Company, Glencore will be able to take the Company private without obtaining minority shareholder approval pursuant to the exemption in section 4.6(1)(a) of MI 61-101. See "Risk Factors". See "Standby Commitment".
Here are the Key Dates to pay attention to: Date that the rights will be admitted for trading on the TSX: November 21, 2019 Record Date for participation in the Rights Offering: November 22, 2019 Commencement Date of Rights Offering: November 26, 2019 Expected mailing date of the Prospectus and Rights Certificates: November 26, 2019 Date on which sale of Rights of Ineligible Holders by Subscription Agent begins: December 9, 2019 End of trading Rights on the TSX Noon (Eastern time): December 17, 2019 Expiry Time and Expiry Date 5:00 p.m. (Eastern time): December 17, 2019 Expected closing of the Rights Offering: December 19, 2019
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