I'm with you on that. Any idea how long this company has to release the shares onto the open market from the convertible debenture thing that just passed? The volume of late suggests very few of the 10 million shares have been let out.
They finally changed the numbers on Yahoo Finance to show TAHO losing 29 cents a share rather that earning 24 cents. The dividend is 24 cents, 2 cents a month, not bad as long as the share price doesn't fall commensurately. Debentures will be redeemed on May 16th, done through issuing as many as ten million new TAHO shares. Dilution will be spread out, I think, so as not to completely collapse the share price, but I wouldn't put it past them (market makers) to use the event as a chance to tank the stock. We'll see. . .
Concurrently with the Change of Control Offer, Lake Shore Gold gave notice of its election to redeem the Debentures on May 16, 2016 at a price equal to their principal amount plus accrued and unpaid interest. Tahoe and Lake Shore Gold have elected to satisfy the obligation to repay the principal amount of the Debentures by issuing Tahoe shares to the holders of the Debentures. The number of Tahoe shares to be issued will be determined by dividing the aggregate principal amount of the outstanding Debentures which are to be redeemed by 95% of the volume weighted average trading price of Tahoe shares for the 20 trading days ending on and including May 9, 2016 . The accrued and unpaid interest on the Debentures will be paid in cash. Debentureholders maintain the right to convert the Debentures at any time prior to 5:00 pm ( Toronto time) on May 13, 2016 at a conversion price of CAD$9.5433 per Tahoe share, being a conversion rate of 104.7856 Tahoe shares per $1,000 principal amount of the Debentures. If all of the outstanding Debentures are converted by debentureholders at this conversion price, a total of approximately 10,811,895 Tahoe shares will be issued on conversion.
Will this be dilutive? Should we stick around or cut and run?