TSX:EIT.PR.A - Post by User
Comment by
DanielDarden123on Jan 22, 2023 1:23pm
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Post# 35238558
RE:Curious Again
RE:Curious AgainSadieLadyCO wrote: The fund may have been running low on paying out the div mthly. That is why the had to sell more shares ATM. It is curious because a closed end fund normaly and only issue share in the fund at the start of the fund. So why now offer up MORE shares.
The ATM is an alternate method of raising capital by an issuer. After approval, the issuer CAN sell units through the market or choose not to. Because the asset manager receives a fee of 1% of the assets, it is advantageous from its’ perspective obviously. Normally any sales would occur at or near NAV/u so as not to impact NAV/u. The proceed from any sales could be invested by the manager to offset any dilution.