North American Financial 15 Split Corp T.FFN

Retraction and Consolidation

[WattDoINo]

As this subject currently applies to FFN and FFN.pr.a here are some info to consider

1) As previously announced on March 12, 2024 the Company will extend the termination date of the Company a further five year period from December 1, 2024 to December 1, 2029. In relation to the term extension, the Company has an additional retraction right for those shareholders not wishing to continue holding their investment, allowing existing shareholders to tender one or both classes of shares and receive a retraction price based on the November 29, 2024 net asset value per unit. Alternatively, shareholders may sell their shares for the market price at any time, potentially at a higher price than would be achieved through retraction, or shareholders may take no action and continue to hold their shares.

2) According to the TSX, holders of Class A shares and preferred shares of the fund can elect to have their shares retracted for a cash amount equal to:

• Class A shares: the greater of (i) the net asset value per unit (means a notional unit consisting of one Class A share and one preferred share) on the date of retraction minus the sum of $10, plus any accrued and unpaid distributions on the preferred shares, and (ii) nil;
• Preferred shares: the lesser of (i) $10, plus any accrued and unpaid distributions thereon, and (ii) the net asset value of the fund on that date divided by the total number of preferred shares then outstanding.

The election deadline was 5 p.m. Toronto time on Nov. 1, 2024. Trades from 9:30 a.m. Toronto time to 12 p.m. Toronto time on Nov. 1, 2024, will settle for cash on the same day.

TO NOTE:
i -Preferred market share price was significantly above $10 on Nov. 1st and will likely to be on Nov. 29, thus don't expect retraction on FFN.pr.a

ii - Commons market share price was significantly below NAV minus $10 on Nov. 1st and will likely be on Nov. 29, thus expect some retraction on FFN.

BIZZARD discordance in authorities messaging
Point 1) says based on November 29, 2024 NAV
Point 2) says in a way, based on Nov. 1st 2014 NAV.

iii - In light of all of the above some consolidation on the preffered is probable. 

Have a great great week-end everyone !

[Higherhopes2020]

I missed.  I could have retraction of  FFN and FTN on Nov 1 would have got at least 80 cents more since market price was discounted to the net asset value by at least 80 cents.  

[WattDoINo]

FTN and FTN.pr.a weren't on the retraction block. This will only come up in 12 months time.

[Higherhopes2020]

ii - Commons market share price was significantly below NAV minus $10 on Nov. 1st and will likely be on Nov. 29, thus expect some retraction on FFN. Is this means they have to offer secondery over night offering for the  ffn.pr.a shares to match the ffn equity shares retraction on or after the Nov 29th to offest.?

[WattDoINo]

That and/or consolidate through portional/fractionnal reverse split like they did in 2019.

[azzurri]

Regardless, those that submitted class A shares for retraction at the end of October are looking pretty good for around a $1 per share come month's end. Here's hoping that the publicly posted NAVs at mid month and month's end for November will pull the rest of the class A holders along to a share price that is closer to NAV than it currently is. I also agree with the earlier post that

[mouserman]

There will be more FFN preferred than  Commons if the retraction takes place. Basically Quadravrest buys back those shares at NAV of NOV 29.. so depending on how many are retracted. Last update showed the exact  SAME number of commons and preferreds in FFN full update. Likley Quadravest will try and buy back preferreds to cancel , so as to level it up.

[CDNINV1]

I believe Quadravest showed the average estimated number of units in the FFN Fund update. That number would be 58,287,992 if we use both Class A 57,992,092 / 2 + Prf A 58579,892 / 2,  shown on dashboard which is not too far out !  I also believe that  at October 31st the 15% Cash Weighting in the FFN Fund Update included Sale Proceed Dollars , not in addition to Cash Portion as the

[maxjac]

I'll have a look at the impacts and implications of using/showing the official historical value from Quadravest for the historical total fund value instead of the estimated value. It should be fine but I have to check first. I will update this board if I make any changes to that. For the number of shares outstanding and the sales proceeds of the ATM program being already accounted for in the

[mouserman]

I would think that the OS share count and cash % is accurate to OCT 31 . And that is why I dont track the share totals of each holding. I only track/estimate  the %  of  NAV for each  as that takes care of any changes. I have been doing this for quite a few years now on several split funds, and many times I have been accurate to the penny.... Now when covered call action and

[maxjac]

I developed the same logic for the dashboard and so far so good. However if I counted the profits from the new shares outstanding twice, then that's a problem I have to address. Could be the reason why the dashboard's estimated NAV is a bit higher than yours.

[mouserman]

Actually last update to friday, my spreadsheet was suddenly exactly the same as yours, but i did note the change in dashboard at the bottom. New share proceeds , actually makes the UNIT NAV drop depending on where those shares were purchaes at.. more shares diluting the UNIT NAV..

[mouserman]

Today I reset all the quadravest split  funds i track back to Nov 15 close, and not adjusted for  USD/CAD exchange. I put in my estimated UNIT NAV and when we get the midmonth update all i need to change is the UNIT NAV, if it needs a tweak.  End of the month and midmonth is when the reset happens on my spreadsheets. It seems to work quite well, just monitoring that way.