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Gold/Mining/Energy : Donner Minerals (DML.V) -- Ignore unavailable to you. Want to Upgrade?


To: Jaakko who wrote (1024)11/15/1997 4:36:00 PM
From: Buckey  Read Replies (1) | Respond to of 11676
 
Jaakko; I was wonder about Denstone myself;

Please anyone correct me if I am wrong. I beleive that for every 1000 shares of DRZ held at close on NOV 11 you will receive 133 1/3 shares of the new company - What value I am not sure. I assume very little.

That brings me to another question. How are short positions accounted for in this situation. Hypothetical scenario is that DRZ had no trades for many weeks preceeding the date of record except one short sale of 6,000,000 shares four days before the date of record that has not been covered. Say there is 24,000,000 shares outstanding. The new company would intend to distribute 4,000,000 shares of the new company. All of a sudden another million are requested as the above buyer needs his/her 6 for 1 compensation as well.

Am I missing something here?? There is likely an easy answer that someone in the securities field can answer sor me.