Investor10X wrote: I can certainly add to this discussion, as I have now added this stock to my portfolio.
All of this discussion hinges on whether or not the entity that takes 10% of the shares is an eligible institutional investor (i.e. institutions, investment managers, mutual funds, pensions, etc..). Because if you are, unless disqualified, you can use Canada's alternative monthly reporting system (AMR). As an eligible institutional investor, you can are exempt from Canada's insider reporting requirements. Again, unless you are disqualified. So what can disqualify them. They can be disqualified from using the AMR if they intend to make a formal takeover bid or intend to take control of some form of decision-making within the company like purposing a merger. If the entity is disqualified from using the AMR, they are also disqualified from insider reporting exemptions, although there are a host of other reasons that can also disqualify the entity from insider reporting exemptions. However, if an eligible institutional investor has access to material information then by law they must file insider reports to the regulators regardless of their eligibility to use the AMR.
If you are disqualified from using the AMR or not an eligible insitutional investor, you must follow the rules under Canada's conventional early warning system. The moment you reach 10% you must file with the securities (within 2 days) and make a press release. No more purchases can be made at this time. One business day after the report has been filed you can continue purchasing shares. Yes, as already mentioned, it is correct in that after acquiring an additional 2% you must stop purchasing again and issue another press release and file a report. Again, you must wait one day after the report has been filed to continue purchasing. For decreasing ownership shares, no reporting is required (though that could change in the future).
At 20%, Canadian law requires a formal takeover bid or tender offer. Although there are some exceptions to this requirement. Even at 5% there are certain circumstances that would require a press release. For example, If you were to acquire even 5% of a stock that is currently in a formal takeover, you would be required to file and issue a press release.
They is a lot more to this and even some changes that have been purposed, but this is the basics of 10% and 20% ownership.
inviolablspirit wrote: Yes, I believe you are correct, they would need to report to the regulators by day 2 of the purchase. Though the public may not get the disclosure of the purchase for several days after that. I'm a little rusty on the rules and regulations, but it's not hard to look them up.
tndl wrote: Good input. My understanding is that as insiders (owning at least 10% or more of total WM shares), any purchase (or sale) of ANY number of shares by either Eric Sprott or AEM would REQUIRE public disclosure within 48 hours. If Eric were to go over 20%, he would be required to make a public offer for the entire company. These requirements also pour cold water on any suggestion that Mr. Sprott is the source of the large volume of recent selling. Would love to see announcement that he is topping off with a little more purchase, but have not seen that to date.