Lanesborough Real Estate Investment Trust V.LRT.UN

Someone is buying the unit but why?

[Cbcdistressed]

I noticed some volume on lrt.un but I don't understand who in the right mind is going to buy the current unit in front of a massive dilution.

why? Is the fundamental turning 180? But it's fair to say that the oil is close to 100 again so maybe someone is anticipating a boom in the city again?

[BobTheKnob2]

Whoever it was spent $200 total (12,000@$0.015 + 1000@0.02) today. It is not your money. It is not your problem.  Whoever it was made their own investment decisions based on their own rationale and research. We all make decisions that not everyone agrees with. At every peak and every valley of every stock ticker history and every economic cycle there is always a buyer, and there is

[BobTheKnob2]

To further my thought. . . I will spend $200 on a bottle of scotch or a night of drinking that easily converts itself to a very satisfying piss in the morning.

[Cbcdistressed]

I was tying to decide what I should do once I have the shares. Might dump them all.... but wish to see the new balance sheet first, given the oil price is closed to 100 again.  If someone bought at current level, I am all ears to hear their opinion as to why they choose to buy now. Higher oil price is the only possible explaination. I used to hold both shares and debenture and dump the

[BobTheKnob2]

  Here is my read on the situation. There is going to be a huge amount of units dropped into debentureholder acccounts on Tuesday or Wednesday this week. As of September 31, 2021 quarterly report, there was a total of 21,148,896 units outstanding. That is a very low float for a publically traded company. With this transaction we have $24,810,800 debentures outstanding + an approximated

[Cbcdistressed]

Good post thanks very much. but my worry is that as soon as you voted them out, the parent company is going to demand the loan they provided over the years, and the company will be forced to liquidate and we as the new share holders will be wipped out entirely, given the huge negative equity at the moment,  That said, the negative equity is at it's book value, the market value might be

[quicksilver545]

Really great points, Bob. I have the same fears about the lack of liquidity and lack of any commitment from directors to support the share price or hire a market maker.  I'm not sure under normal circumstances that the market cap should go up 30x to keep the current share price, but will admit that I don't have many comparitors to make any comparisons. There is so little liquidity

[BobTheKnob2]

I actually have very strong suspicions that the Shelter/Manitoba group is intentially keeping the price down and has an ulterior motive to do a take under.  Watch if the share price goes into the toilet in Tuesday, or whenever the shares show up in accounts, that they may be on the bid sweeping up as much as they can. Take it private.  Done, and done.

[Cbcdistressed]

You are right but they won't buy the shares they will simply convert their loan provided earlier into the new units. 33 million gives us 94% of the unit, shelter has provided the reit about 100 million loan so far which will be enough to make a privatization call.

[Isyckle]

Yeah, but the loan is just there to compensate for the fake losses attributed to fair value adjustments that were really accounted for as straight revenu losses. The trust didn't need that money, and if the balance sheet goes positive, fair value adjustments will go UP as straight "revenues". So trying to privatize at the lowest point, after this big of a change in accounting

[Isyckle]

We should call an extraordinary meeting to ask to change back to the traditionnal accounting method and valuation of the trust based on asset value instead of rent revenues. asset value would sky rocket to like 400m$ Or so with the current crazy real estate market and we would all be happy

[Isyckle]

Of course im kidding. Changing accouting method has this downward spiral for every compagny making the change. but the thing is, it's almost over. fair value adjustments are near their lowest in my opinion, so when it stalls, it can only go one way, and that is UP.