New Found Gold Corp V.NFG

charity flow thru shares bought deal

[snooker1797]

quick question-do the the purchasers of the flow thrus get the tax write off and then because they donate them they get a receipt from the charity for a second write off?

[Retiredgeo]

Assuming that I have this straight: The shares go from the issuer (NFG) to the donor (SPROTT) to a charity chosen by the donor to BMO to the end customer. The donor SPROTT buys the shares from the issuer NFG and donates them to the charity.  The charity then sells the shares to BMO.  BMO then gives the tax credits back to the donor, which join the tax benefits of the 50 million

[Goldziggy]

yes thats how i see it as well. Shareholders have to wait for the overhang to be bought up but they only issued 6.2 million shares at 8$ so not much dilution and shareholders win on that point. They only raised 50 million so far and not 94 million which dixie said. they didnt sell any extra atm shares only the 6.2 million shares from the flow through 

[eldreco]

Dixie, Yeah, thinking on it.  If someone were to buy a sizable chunk of Charity shares...donates them...gets the tax credit THEN buys a sizable chunk of the BMO "second" offering - against which the tax-credit was applied - that looks like a pretty good deal, right?  Company gets what they want...charities get what they want...and that someone comes out somewhat ahead of where

[Dixiedee]

  hopefully that someone does buy the discounted shares at 5.68 in the mean time it allows us retail investors to purchase some shares in the 5.50 to 5.60:range for a short period of time  the share offering at 5.68 is the back end of the 50 mill deal where the company got 8 for the shares and the buyer got the tax deductions 

[Evenkeel123]

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[Dixiedee]

  is the back end of the charity shares it is not additional shares being issued