Obsidian Energy Ltd T.OBE

Receipt deal closes Nov. 18

[pennydredful]

should  be some  arb play between  the  two.

[Tim14235]

Isn't deal close simultaneous with receipt close?    And where you seeing 18th?  Best I had was the week of the 15th.  thanks

[pennydredful]

No , par for  the course  is  receipt money  put in escrow  till  the deal  closes. If Chinese reneg  on  deal  funds  are  returned  to  receipt  holders  .  I  was  advised  by Ray J.  where  I  bot  some  receipts that  closing   is nov  18th 

[kavern23]

Thanks for the info Pennydreadful. I don't deal with RJ.  Do you know what target they have for OBE? Are they still at 5?

[pennydredful]

Once   an   underwriter  enters  an  underwriting   agreement  till  the  deal   closes  and  perhaps  a week  to  ten  days  after , their   research   dept.  can issue  no  new  recommendations  or  targets .  Obviously   they 

[kavern23]

Thanks that is a great point on RJ's research department would be on a hold for awhile. But for the shares the Chinese Company is getting...they have a hold period until Feb 2 2022? Is that assumption correct.

[pennydredful]

Feb2 2022 .  Are   you  getting  that  from  some where ?   Depending  on  the  % age  they  hold , there  could   be  an extended  release  period  divided  into  about   4   tranches    perhaps  60 to  90  days   apart 

[Tim14235]

CIC is getting cash not shares. Are you speaking of their former holdings? It was contended that those were sold down. If you recall Ho Chuek Fund dumping for an entire year it seemed. I would have to look up and see what CIC got in the PROP iniation

[kavern23]

Too excitied seeing oil up 55 cents in after market to check but I will post later on it. Love to see WTI over 82 for sentiment reasons.

[kavern23]

Hey Tim and Pennydreadful, think I have this sorted out and will respond to both of your points in this post. Yeah Tim, you are correct CIC isnt getting any shares because today they officially announced got the 22M If was there was any short fall, CIC would have had to take shares instead of cash. So thankfully they are gone for good hopefullt and you are right they have no shares from this deal

[Hendrick3]

Kavern, if they know for certain they are getting shares because the deal is done, they can realize a quick gain by shorting the shares and then covering with the $4.40 shares. While I think this is very short sighted trading mentality, if I was nervous about the market I understand taking a 30 cent gain now. 

[pennydredful]

Both   receipts   and  of  course   shares  will  be  trading  Nov.   18th.  . The  receipts   will  continue    to  trade   till   the  deal  closes  .  Once  the  deal  closes  the receipts   will 

[Mickey2]

what will be the symbol on TSX? are you sure the receipts will trade on nov 18th? ok thank you.

[kavern23]

Mickey I don't think receipts will ever trade. And why I think my interpretation is correct that people will have acces to their shares is this paragraph released yesterday..it used the word "on" december 31, 2021 and not "before" december 31 2021. Key word to me is "on".... I think subscription receipt holders are stuck until then so too speak but most are

[kavern23]

Not only the money that get's released on Dec 31 from escrow...also this "and each Subscription Receipt will automatically be exchanged for one Common Share for no additional consideration and without any action on the part of the holder.

[Mickey2]

yes, but subcription receipts usually trade on an exchange...so for OBE...i assume the symbol will be OBE.R just like the IPO receipts, it trades under IPO.R

[kavern23]

Good point on IPO. Didnt realize that IPO.R trades.... Why are they 1.91.... $1.91 -$0.03 (-1.55%)

[kavern23]

So will OBE.R trade until December 31 and then that day they are converted to common shares... I did the Canadian Securities course before but it was many many years ago.  quote=kavern23]Good point on IPO. Didnt realize that IPO.R trades.... Why are they 1.91.... $1.91 -$0.03 (-1.55%) [/quote]

[pennydredful]

1.91   reflects  the risk  if   deal  does not go thru they will receive their 1.20 back and lose .71 per rec.

[pennydredful]

OBE .R  will  convert  to shares on  the  day  the deal  is  finalized  ie  between  Nov.   18th   and   dec.31st    .   If   deal  not  done   by   Dec 31    deal    dies    and   receipt

[pennydredful]

Receipts   will   trade   unless   deal  closes  Nov. 18th  .    If   deal   does   not   close   by   Dec.  31st     receipt  holders   will  be  given   their    4.40   back 

[pennydredful]

OBE.rec    .   Another  new  issue   receipt   yesterday    was      SOT.un         Slate  Office  Reit.