Concordia Healthcare Corp. T.CXR.R

Reading Between the Lines

[Stockcoach1]

Concordia also announced today, as indicated in its management information circular dated March 24, 2016, that it has adopted an amended code of conduct (the "Code") which prohibits directors, officers and employees of the Company from purchasing financial instruments that are designed to hedge or offset a decrease in market value of equity securities granted as compensation or held, directly or indirectly, by any director, officer or employee other than solely in connection with the exercise of options or vesting of restricted share units held by a director, officer or employee to pay the required amount of withholding taxes and/or the exercise price to acquire common shares of Concordia under stock options granted to such directors, officers and employees. A copy of the Code can be obtained from the Company's website or under the Company's profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

Reading between the lines, I'd say they expect results to be such that they are comfortable banning hedging. It's kind of like saying....go ahead tie my hands behind my back while we go for a boat ride, knowing full well the boat is a safe and you don't expect it to capsize. All about optics and confidence.

 

[Lattice]

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[visionaryfool]

The cynic in my thought it could be to prevent any short position originating from the employees. For example, I have stock option with strike $50 vesting in a month. If the stock price is at say $60 and I want to lock in my profit, then I would enter into a short position at $60 to lock in the profit. I'm sure that isn't the intent but I've gotten somewhat cynical since the 7 day

[ohwhatanight]

there are always games being played around options expiry..... whoever is pulling the strings I do not know.... but cxr was definetely moved downward for April expiry!!  

[Lattice]

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