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

Confused...

[Ravdan]

It would be appreciated if someone could explain this news today. I see the stock price went down...but from what I'm reading here we (or some people)  are getting a 39 % stock increase ??

I have only 2500 shares...what does this mean to me..Good or bad news ?

[SamRothstein]

Ravdan, the 39% refers to the amount of shares that each minority shareholders tendered that will be purchased by GMP at $2.42.     The SIB was oversubscribed, so with the proration people got 39% of tendered shares purchased.   The reason for the price drop is that a lot of short term speculators probably piled in for the tender, and are now selling some of the shares

[Ravdan]

Thank you for giving it a shot SamRothstein...but it fly over my head. Lol. if you have the patience...ques. So I assume I am gaining from this as I had purchased my shares over a year ago ?   thanks Dan

[SamRothstein]

It depends on your cost bais per share, and whether you tendered all your shares are not.   If your cost basis is less than $2.42, and you tendered all your shares, then your profit is the amount below $2.42 that you paid for your sahres, times the number of shares you own, times 39%. So if you paid $2.00 per share, and you tendered all your shares, and lets pretend you own 1,000 shares,

[Ravdan]

Thank you SamRothstein. Yes that makes sense. Appreciate your time.  Thanks Dan