RE:Ninepoint's 9.9% ownership filefish wrote: In consideration of the 10% Rule, as ATH progresses with its buyback program, wont Ninepoint have to continually sell off its ATH holdings to keep them under 10%. Can these shares be sold directly back to to the Company?
The 10% rule applies on the day of the purchase. There are 2 10% rules and both use the same premise. He can't own more than 10% of ATH shares outstanding......at the time of the purchase AND his fund can't have more than 10% of its portfolio in any one company, like ATH. IF ninepoint owns more than 10% due to passive backdoor math of buybacks, he is grandfathered and is not forced to sell. He may want to, to be prudent, but he's not forced to.