Algoma Central Corp T.ALC

RE:Conversion of debentures to common

[Tim2Agami]

dangood wrote: Following this dividend we expect an adjustment to the conversion price of the convertible debentures, reducing it to $14.10.

With the commons trading roughly 4% above the conversion price it would be beneficial to have the debenture holders convert and then sell their shares. this is likely keeping a lid on the share price as algoma just reported their best 1st quarter EVER. And they will  have some new ships setting sale in 2024.

With the debentures at 5.25% this means the company will be saving this interest - which will go to the commons of course. When companies trade at a steep discount to book ($14.67/20.14 this is an added benefit as the earnings benefit will be enhanced.

i
As the conversion date gets nearer, your prediction of the softening of the share price is, as suggested, as it fades nearer to the $14.10 point. A few days left.  The chart looks like a plan of the lift locks on the Welland, headed from Port Colborne to Weller. Will there be a Thorold?

It would be a nice time for ALC to step in with its NCIB to sweep up some of the paper being dropped by the dumpsterists

Or for other opportunists to wade into a thinly traded stock.