OK, all figures C$
Lets say you buy 100000 EEE at C$ 3.50 for $350,000 Lets forget about the exploreco shares and special dividend. After the conversion 4:1 you have 25000 shares
EEEb.to: you have 25000*13.01, or $325,250
Me, the Canadian in the US, buys 100000 EEE at CDN 3.50 for $350,000.
EEEa.to: I have 25000*13.16, or $329,000.
Imagine if, as a Canadian you owned 1m shares of PGH on the NYSE and your Canadian brother, in the US, owned the same. (A relative passed away and you each inherited 1/2 the 2m shares they had the day before PGH converted to a and b shares).
Post-conversion,
You hold from conversion to today.
The Canadian in the US has 1m*23.88 (pgfa) or $23,880,000.
You, the Canadian in Canada, has 1m*19.30 (pgfb) or $19,300,000.
By the way, pgfb is now trading below where it was in July post split (it was 19.77).
You both now dispose of your holdings and the Canadian in the US has $4.5m more. Canadians cannot own the more liquid higher priced a's.
I hope you're starting to get an idea of where these class action lawsuits are coming from? You don't think this is a penalty. Sure the yields might be nice for an entry point now but pity the original Canadian PGH and EEE holders liquidating big positions.
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