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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Scott Mc who wrote (850)	3/28/2001 1:54:55 PM
From: stan_hughes	Read Replies (1) \| Respond to of 11633

Scott - I actually don't have a problem with issuers offering rights or warrants to existing unitholders. That at least represents an invitation to the existing stakeholders to participate in the establishment of any additional capital, rather than by eroding the shareholder base in the manner in which NCF was gutted. If the NCF treasury honchos stopped to think about it, paying a fee to have a rights issue managed would have been a lot cheaper than seeing 15% of your market cap evaporate. Whether or not the capital being raised for these trusts is truly required is an exercise in assessing the quality of their balance sheets in the context of the company's future needs. Some trusts also have covenants that lessen control over how funds are raised or distributed, and IMO each situation needs to be looked at individually and judged on its own merits. FWIW I haven't been recently involved with any trusts raising money that they didn't already have plans for or couldn't make use of - do you have one specifically in mind?