RE:RE:RE:What do you guys think of this deal?Could they have made this any more confusing? Couldn't they come up with a much more simple way to reward shareholders? Maybe it is good they seldom do a press release?
The way I read this Mumbo Jumbo is that the $12C is a firm offer to buyback at that amount but this is not a binding offer. They have the right to change or cancel the buy back any time before 10/17. Which may be included just in case they get binding offer to sell part or all of FEC before that date..
Also, Catalyst and Gramercy say on the date of the press release they intend to particpate in the buyback offer But can change their minds at any time for any reason. But I read it being done on a pro-rata basis interpreting that means that if Catalyst, who owns about 41% of shares takes the full buy back offer, they can get $12C firm for up to 41% of the $40,500,000C/3,375,000 shares.I may be way off here what they mean by pro-rata, so please correct me.
Since $12C/$8.88U is a big jump from current price and the price has been on a downtrend based on company making themselves invisable for almost 2 years, I think that a good chance that more shares will be offered for sale than the 3,375,000 available, particularly if both Catalyst and Gramercy elect to sell their combined pro-rata 55% of the 3,375,000 Shares Offered. Then it gets even more confusing if over-subscribed.
Does that mean that Catalyst still gets 41% of the $40.500,000 or?
Just for info: The last time that FEC was at $12C/$8.88U was mid Oct of 2023.
Here are the quotes from the press release to try and interpret as I likely may be misreading or misunderstanding the jargon. .
Any corrections/discussions to my read on this is appreciated
"the Company will offer to purchase from holders ("Shareholders") of common shares of the Company (the "Shares") up to 3,375,000 Shares for cancellation at a purchase price of CAD$12.00 per Share (the "PurchasePrice"), for an aggregate purchase price not exceeding CAD$40,500,000 (equivalent to US$30,000,000)"
"LLC ("Gramercy" and, collectively with Catalyst, the "PrincipalShareholders") are the beneficial owners of, or exercise control or direction over, 34,775,609 and 11,300,032 Shares, respectively, which in the aggregate represent approximately 54.73% of all issued and outstanding Shares. Each of Catalyst and Gramercy has advised the Company that their current intention is to deposit Shares pursuant to the Offer, however, their decision to participate in the Offer is subject to market conditions and other factors. Each of Catalyst and Gramercy reserves the right without notice and for any or no reason, to change its investment decision at any time prior to the Expiration Date. In addition, officers of the Company have expressed an intention to tender 247,569 Shares to the Offer."
"If more than 3,375,000 Shares are tendered for purchase, the Company will purchase the Shares on a pro rata basis after giving effect to "odd lot" tenders (Shares tendered by Shareholders beneficially owning fewer than 100 Shares), which will not be subject to proration. In that case, Shares that are tendered but not purchased, will be returned to Shareholders"