GMP Capital Inc. Cumulative Floating Rate Preferre T.GMP.PR.C

39% of the shares you tendered will get purcashed at $2.42

[SamRothstein]

Kaching! Finally.  I have a huge position here and actively campaigned against the 2nd offer that was made to minority shareholders.  I'm really happy to get approx. 39% of my shares purhcased at $2.42.   I thought it would be closer to 30% but I guess there are quite a people that own shares with a cost basis that is higher than that. 


GMP Capital Details Preliminary Results of Substantial Issuer Bid

19 Nov 202007:41 ET

07:41 AM EST, 11/19/2020 (MT Newswires) -- GMP Capital Inc. (TSX: GMP) announced Thursday the preliminary results of its previously announced substantial issuer bid to purchase up to 16,528,926 of GMP's outstanding common shares at $2.42 per Common Share for an aggregate purchase price of approximately $40 million. The SIB expired at 5:00 p.m. (Eastern time) on November 18, 2020 .

In accordance with the terms and conditions of the SIB and based on the preliminary count by AST Trust Company (Canada), as depositary for the SIB, GMP expects to take up and purchase for cancellation 16,528,926 Common Shares at the purchase price of $2.42 per Common Shares for an aggregate purchase price of approximately $40 million .

According to a statement, the number of Common Shares purchased under the SIB represent approximately 21.9% of the Common Shares issued and outstanding prior to the commencement of the SIB, and 9.4% of the Common Shares issued and outstanding after giving effect to the previously announced consolidation of 100% of the ownership of Richardson Wealth Limited (formerly Richardson GMP Limited) under GMP, which closed on October 20, 2020. After giving effect to the cancellation of the Common Shares purchased, 159,380,123 Common Shares will be issued and outstanding.

Thursday's statement said an aggregate of 42,386,922 Common Shares were validly tendered or tendered through notice of guaranteed delivery and not withdrawn pursuant to the SIB. As a result of the SIB having been oversubscribed, it is expected that shareholders who tendered Common Shares to the SIB will have the number of Common Shares prorated to approximately 39% of their successfully tendered Common Shares following the determination of the final results of the SIB.

[Wisedreamer]

Aren't only the minority shareholders i.e the 16,528,926 eligible to tender?  The rest of the people are conflicted from participating in the SIB.  So I am scratching my head why there are 42,386,922 shares tendered!  Something is not right!

[SamRothstein]

Correct.  Only the minority shareholders were eligible to tender.  I'm not sure what you find odd about that particular number of shares being tendered.  What exactly do you think is not right?

[astutein]

Sam - I too are happy with the39 % for my shares.  Some individuals who purchased shares after the announcement of 2.42 purchased the shares of  trying to be smart bt purchases shares at $ 1.0 and tendering them with thought they would get  2.42 but the market fools no-one.  I as well as you had owned the shares prior to announcment of of tender offer. By reducing the number

[astutein]

Sam I think by ourchasing shares back at $ 1.61 approx it is a goog move.   100% of richardson wealth is good investment now and provides little risk.  The new entity in next six months will show value of entity and future gains in stock.   What do you think of new entry in RGP stock.? Follow up to previous memo   THANKS THANKS

[SamRothstein]

Astutein, I am not sure if I will buy more or not as I even after 39% of my shares get purchased I still have a really large position.  I will probably wait and see what their next earnings report looks like.  If I were to buy more, I would want to wait a bit to see if this selling and downward pressure on share price is done.  Good luck!

[SamRothstein]

Astutein, Yesterday I was able to profitably exit a large position in MFC after snagging the dividend, and since I was flush I decided to go ahead and buy more GMP.   I probably should have waited a bit longer to see if the selling pressure is done and if shares fall further as I counselled you.  However, I think shares are good value at $1.61 (where I bought most of my shares

[astutein]

Sam When I get my cash $2.42 for my shares I also tend to buy more. From a mere accounting point the transaction does not reflect the value of new rcg at all.   Company has less cash but less shares 0/s.  The book value remains at 2.42.   The reason i feel shares dropped to $ 1.61 was that some investors did not understand concept of rewarding existing shareholders at time

[astutein]

Sam Ps i recall you from Wilan ( Quarterhill Board) , am i correct. I hope you still own shares in Quarterhill as it has never looked mbetter.

[astutein]

Sam i sent you message today.  Go to community and drop down to messages  to read.

[SamRothstein]

Yes Quarterhill has been sweet ride.  I have bought and sold it a few times on the way up but always held core position.

[astutein]

Sam  How about re-connecting and posting on Quarterhill.   You will be welcomed addition with your knowledge and smarts.  Next year could be breakout as very little list at $ 2.70 as shares traded at close to book value with close to 200 million cash and Ird = .270

[SamRothstein]

Thanks Astutein I will do so. 

[SamRothstein]

Yes I am looking forward to getting infusion of cash when they buy 39% of my shares.  I think the  other category of people that sold and probably the bigger one is the provate equity firm that bought about 8% of GMP (their name escapes me right now) when the shares were closer to $1 in March.    So they can get 39% of their shares bought at $2.42, and still start selling their