to simplify the math, suppose a company has 100 shares of present value $10/sh, total $1,000
company sells 20 new shares at 12% discount i.e. $8.80/sh, total intake $176.00
company is now worth $1,176.00 including the new cash, and there are 120 shares
each share is now worth $9.80
dilution is 2% to existing shareholders
TDAmeritrade takes 15%. I refrained from plugging them in my earlier message but since you ask… Brokers have to make an arrangement with the French authorities. I imagine the big full-service brokers all have such arrangements.
Get a broker who lets France take 15% instead of 30% dividend withholding, and hold this stock in a taxable account and use the foreign tax credit to recover the French tax. Upshot is you pay 15% tax as qualified dividend.
You are an idiot. The distribution is immediately subtracted from the share price. The stock goes up or down based on what the holdings do.
Back in today (8.83). Did pretty well last time, don't want to think about the time before that (hint: Indiplon).
Not expecting a buyout, but hoping for good news on VMAT2 at high dose.
The key point is that they won't have to do an equity raise in the current depressed environment. I have learned the hard way that this is the real problem with junior minors over a cycle.
You could be right, but they won't be selling any gold for a long time and don't need to refinance, so it's basically a leap on the gold price three years hence.
Of the sub-juniors I thought they had the most convincing pitch in Denver out of several that I watched. They have enough cash to ride out the downturn and should be in a good place in a couple of years without a painful refinancing. Of the majors, I was most impressed by AU given its current share price; of the silvers, HL. Patience needed.