Frontera Energy Corp T.FEC

Ok, let's do an examples to determine which way Pro-Rate is

[CrazyTrader]

2 people tender.  

example 1:

Bob tenders 3,375,000 shares
Ted tenders 100 shares.

example 2:

Bob tenders 80,000,000 shares
Ted tenders 100 shares.

Does Ted get 4 shares no matter what?

[a2bman]

yes thats prorated

[CrazyTrader]

These example show that the 4% doesn't make sense. In example #1, you can't apply 4% to Bob.  Bob is going to get way more than 4%.   If you can't apply 4% to Bob, then you can't apply 4% to Ted.     4% only works if every single shareholder tenders every share.  Only then you can apply 4% to everyone.  

[a2bman]

Yes if every shareholder tendered 4% of their shares everyone would get 4% or their shares sold at $12.  If not everyone tenders 4% or their shares, then others can tender more than just 4% of their holdings but its prorated.  So if anyone gets to sell 6% of holdings we all get to sell 6% as long as you tendered enough before the calculation. Read this pr from a windup of an SIB it

[CrazyTrader]

a2bman, thanks for the link to an result of an actual tender process of another company.   But I couldn't figure out how number 80.9% came to be..... as such, I can not apply to our situation to understand the 4%.  

[Frank007]

lol.....and yet I just bought a thou at $8.63.... lol...what a con game 

[a2bman]

that one was a little diff.  it was dutch auction - the offered between 11.40 and 13.00.  you choose your price and how many shares.  11.40 was below market at the time if I remember correctly so why do that. I think what happened is nobody but a few big guys tendered at 11.40 and since nobody else did at that price they got 80% of their shares bought.  Someone correct me if

[Frank007]

U r correct ...it was set up as a Dutch auction...lol...I looking back now I wish I had sold all ...and bought back in at a lower price ...lol ....it sure is a miserable con game ...like I was saying they are going to suppress the stock price to get as many people discouraged and tender their shares ....i been ...buying got some more $8.59 .....I can wait ...

[waitingstill]

You have to tender 100% of your shares to get the 4% filled. For example, if EVERY share was tendered (100%), then 4% will be filled at $12 and the rest returned. If 50% of the shares are tendered, then 8% of the shares will get filled at $12 and the rest returned. After thinking about my previous statement, and seeing as there appears to be no drop dead date, they can not know how many shares

[waitingstill]

I mean you have to tender 100% of your shares to maximize how many will get filled.

[CrazyTrader]

Waitingstill, you have determined that " they must be determining the amounts based on what is tendered."   So this 4%, 8% does not apply.     I concure as my example shows why 4% can not be used. My original FIRST post here I think is "correct" which describes how Pro-Rate probably applies and possible outcomes.