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Bullboard - Stock Discussion Forum Ainsworth Lumber Co Ltd ANSBF

GREY:ANSBF - Post Discussion

Ainsworth Lumber Co Ltd > Question for U.S. holders and Memo to Ainsworth
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Post by J3X on Jan 05, 2013 2:22pm

Question for U.S. holders and Memo to Ainsworth

Has anyone who holds Ainsworth through ANSBF received proceeds for their rights yet?

I am a long-time holder through ANSBF. After the rights offering was announced, I received something in the mail saying that I could not participate - something having to do with Ainsworth not being "reg S" compliant. I immediately contacted my brokerage and requested to sell the rights associated with my shares. After having my call transfered numerous times, I spoke with someone (I believe from something called "Compushare") who said that the rights associated with shares owned by people in the U.S. would be automatically sold, but there would be a time lag between the sale and when the proceeds would be deposited in our brokerage accounts.

Having had the intention to use the proceeds to immediately buy more shares (to avoid dilution of my position), I am perhaps understandably upset that the stock has rallied sharply the last few weeks. I have been waiting patiently for the proceeds from my rights sale, but so far have had no luck. Have any other U.S. holders had a similar experience? This rights offering is starting to take on the appearance of a direct wealth transfer from U.S. shareholders (not permitted to participate in the rights offering) to Canadian ones (who could participate in the offering as well as buy up the rights of U.S. shareholders on the cheap - since they were a block of forced sellers). I am trying to ascertain if the problem was with my brokerage, "Compushare," some other entity, Ainsworth, or what. 

And as an addendum - memo to Ainsworth: Western Canada OSB prices are over $400. Your future is bright. GET REG S COMPLIANT.

Comment by louel on Jan 05, 2013 5:18pm
   I can tell you there was a terrible delay even here in Canada for it all to arrive.    Controlling share holder who owns 55%  Brookfield is an American entity.     There should be no reason it should not be compliant with US securities regulations.    Dividend payments for Canadians who hold American companies ...more  
Comment by bridgetonowhere on Jan 05, 2013 9:44pm
@J3X - Only speculating but I would expect that Ainsworth would be responsible for regulatory fees to comply with "reg S" and after polling their shareholder base they determined that the costs could not be justified.  Could you not have transfered ANS and held it in a foreign account and participated in the rights offering?