ECN Capital Corp T.ECN

Good Show of Confidence

[retiredcf]

09:05 AM EST, 12/15/2021 (MT Newswires) -- ECN Capital (ECN.TO) said Wednesday that the underwriters have agreed to buy $60 million of listed senior unsecured debentures due Dec. 31, 2027, at a price of $1,000 per debenture.

The company's shares, which rose 1.1% in Canada yesterday, were up 0.6% in early Frankfurt trading on Wednesday.

ECN Capital has also granted the underwriters an option to buy up to an additional $9 million of debentures.

The company plans to use the proceeds to fund growth initiatives and for general corporate purposes. The offering is expected to close on Dec. 23.

[SuperM]

I don't understand why shares are up the last 2 days. People who don't own the shares as of the end of day today, will not get the divi. That means that people who bought yesterday and today, will not get it. It's a little confusing.  Buying at over $11 with the price dropping by 7.50 next week is not a good investment strategy.  Seems odd to me. GLTA SM

[Lawyerup]

Ex-dividend date is the 15th, doesn't matter if you bought today you still get the dividends.  I think you are confused with the settlement day which is two business days after the trade date, known at T+2.  So it should drop tomorrow which is after the 15th.  Cheers Charlie.    

[SuperM]

This is from the news release "The Distribution is scheduled to be paid on December 22, 2021 (the “Payment Date”) to holders of Common Shares of record as of the close of business on December 15, 2021 (the “Record Date”). So record date is today which means if you buy today, record date is 2 days from now! That's my take. GLTA SM

[BigJo]

It's more complicated than a regular "ex-dividend" situation From ECN's press release: "The distribution is scheduled to be paid on Dec. 22, 2021, to holders of common shares of record as of the close of business on Dec. 15, 2021. Subject to confirmation from the Toronto Stock Exchange, ECN Capital expects the common shares to commence trading on a due bill basis at the

[SuperM]

yes it is more complicated than normal ex-divi situations. the actual reduction of share price will happen on Dec. 23rd. So, i don't expect the shares to drop that much, but it's still going up, which is a little confusing because byers today, would not receive the distribution. It could be a good bying opportunity on Dec. 23rd though. Anyway, GLTA

[Lawyerup]

Looks like people are a bit confused this may help: New 2 day rule:  T-day + 2 business days.  So if you bought today December 15th your settlement date would be this Friday December 17th   The confusion is around the Trade Day (some called Record Date) counts as one business Day but it doesn't so if you remember T-Day + 2 business days it's easy to remember

[SuperM]

I don't want to start an argument but if you buy on the x-dividend day, you do not get the dividend. As described below.  Ex-Dividend Date (or Ex-Date) In order to receive the next scheduled dividend, you must own the stock before this date. If the stock is purchased on or after the ex-dividend date, the seller of the stock keeps the dividend.

[thebear91]

This special dividend follows a different set of rules : Special Dividends: "Due Bill" Process | IB Knowledge Base (ibkr.info) The ex-div date is December 23rd, as per BMO. Due Bill Period effective Dec 14th, until the ex-div date dec 23.  As per the TSX :"During the due bill trading period, the seller of the listed securities (who is the prospective recipient of the

[SuperM]

Well, if you are correct, that is even more confusing. Dividend paid 22nd, ex divi on 23rd So, they take it back if you sell on 22nd???

[thebear91]

since the dividend is over 25%, the due bill process protects the valuation until ex-div standard dividend events in chronological order: 1) ex- div (stock trades down to new value) typically the day or two before record day, will receive if you own stock before record day 2) Record day - 2 days later, which gives buffer for those who buy on last day to have orders settle bc T+2 3) Payout

[thebear91]

confirmation of ex-div date on morningstar : ECN Capital Corp (ECN) Dividends - XTSE | Morningstar

[Blueswin]

Thank you that was a great amount of digging for info. I am thinking of buying back in when the price drops back down which I think from what you are saying will be either Dec. 23rd or Dec.24th. Agian it will be interstiong to see whre the new price lands. Thanks again for your reflections!