Temple Hotels TMPHF

Rights Offering

[harrywoo]

The Morguard guys are really playing this well.  From my experience, a small cap company raising this much money in a rights offering is very rare.  Lots of shareholders can't or won't participate, as they don't have the funds in cash, or the room in their RRSP, etc.  So Morguard gets their full proportionate share, but then I think we'll find that they take up the additional shares that will be available (from those that don't participate), and their takeover becomes just a nice, slow creeping event, at great prices.  Eventually they'll take out the remainder that they don't own, but the cost of doing so, even at a signficantly higher price, won't be that material, because of their ownership level post rights offering.

[HermannHaller]

Yes, Morguard achieves two objectives with the rights offering: they lower the price of the shares, and they increase their percentage ownership. Both factors make their ultimate privatization of TPH cheaper. They have been using the rights issues to repay the deb holders. This is the last deb outstanding, so I assume the last rights issue.

[KnowledgeSeekr8]

Well I just put in my do not exercise for the rights to my broker. I was hoping I might be able to sell them for at least a few pennies but no such luck and they will expire worhtless as the trading fee to sell them is more than the amount I will get for these useless rights. Morguard gets more of the company from me at a discount. How many rights offerings is this now, I've lost track. I'

[apainter]

I am exactly in the same boat as you. I was hoping Morguard would take this over at a premuim but even that does not make any sense for me now apainter

[HermannHaller]

Looks like Morguard has raised its stake to 71%, from 59%, with rights exercise.

[HCI_STEEL]

I had debs that were being redeemed dt the rights offering so I picked up 1500 shares, then got 1500 rights and exercised them in full, PLUS i put in a request to oversubscribe another 2500 shares. I got 100% filled on my oversubscription so it isn't just morguard getting shares that were available from those who didn't exercise their rights...which results in their original position being

[ariesleaf]

Morguard still owns 71.40%  Has control of TPH. Something will happen before June 15/19. Buy out Merge or Takeover at  $2 or more.

[Mr.Monopoly]

Why June 15? 

[ariesleaf]

This would be after first Quarter plus news about Trans mountain pipe line go ahead.