RE:RE:RE:RE:RE:RE:Eric Sprott interview -- talks a lot about NFGTk,
It was not so much the Charities that are the issue - those were subscribed to and it is done. The fly in the ointment was the simultaneous release of a second, equal, batch of 6.2-odd million shares to BMO with a value of $6.50 (thus returning to NFG 50 mil on the Charities plus 35 mill on the second lot). I don't know what they were thinking...that the buyers of the Charities would automatically buy from the 2nd lot? Looked good on paper, I'm sure...but those that bought the Charities SURELY had other things to write down...ya think?! The market didn't like it...and has dawdled in the $5s since...knowing there is this enormous block of shares to get through before the SP can proceed beyond $6.50.
An interesting conundrum...am not quite sure how they can resolve it.
el d
Tk11455ok wrote: Gangsterme,
Just trying to completely understand this Flow Through Transaction. ES through Sprott Capital Partners paid $8/share (50M) to NFGC for 6.25m shares. ES (Sprott Capital) gets to write off 50m. Did BMO just broker the deal? I didn't think that ES needs to sell the shares to someone else to get the tax benefits. I would thus expect him to hold on to the shares. Who actually ended up with the shares and do they have a 4 month hold as is typical? I understand the tax write offs, but you don't need to "give the shares away" to a "charity" for that. Any help will be appreciated.
TK