Post by
jamesf666 on Oct 17, 2013 1:58pm
CHANGES
THIS IS A BAD DEAL FOR INVESTORS. VOTE NO
The Financial Post reports in its Thursday edition if shareholders give their
approval, there will be two more public real estate companies by year-end. The
Post's Barry Critchley writes this week, Trez Capital, whose business is
managing mortgage investment corporations, announced plans to convert two of
them -- publicly listed Trez MIC and Trez Senior MIC -- to public companies.
For that to happen, shareholders have to give the green light. About
$300-million of assets is involved. As an inducement to get them to convert to
a public company from an investment fund, the manager is offering a one-time
prereorganization redemption whereby shareholders can put back 15 per cent of
the outstanding shares and receive net asset value. In March the Canadian
Securities Administrators' announced proposed changes would prohibit the two
Trezes from continuing to invest in non-government guaranteed mortgages. Last
month the Ontario Securities Commission weighed in with other planned changes
that would have affected the ability of existing and new MICs to raise
capital. Timbercreek Mortgage, made such a conversion after shareholders
supported a transition to a "non-investment fund reporting issuer" from an
investment fund.
Comment by
ArbProfit on Oct 21, 2013 12:12am
This will pass. Timbercreek shareholders voted 99% in favour.
Comment by
testomax on Oct 21, 2013 7:38pm
Why is this a bad deal for investors? Theoretical gain on trailer to shareholders....Ability for company to do normal course issuer to support NAV/MV purchases to fulfill DRIP programs...Sure brokers will sell for self interest in loss of trailer....but that was likely baked into Trez when MTG made the initial move. Thoughts?