Posted On: 12/09/2015 11:37:03 AM
Post# of 56323
Re: SIObserver #53996
SIO , I think you are probably correct on all fronts there. Here seems to be the quandary , so to speak.
First, the company has not announced an ex date yet. There are most likely very good reasons for that , and most to do with ticker symbol and other administrative reasons , (not negative just things that have to be done) , that has to do with FINRA approving the spin off and making sure all things are in place.
Another issue is that if one researches spin offs and looks into the news feeds for them, what you will find is some very creative ways to do a spin off with respect to the ex dates and distribution of shares.
One thing I have found to be constant is that if a company spins off a subsidiary , and the shares to shareholders of record are over 25 % of the new company, then the ex date moves to after the distribution of said shares opposed to 2 days before the record date.
In a normal dividend type of situation the ex date before the record date is because the transaction of buying shares takes 3 days to become part of the record.
In this situation, in which 100% of the shares are going to shareholders on record , the ex date is now , I think , after the distribution date.
Now comes the question of : ' Well , if I sell my shares after the record date of the original company , will I loose my shares of the spun off company ?
Also, if I am a shareholder on record , and I buy shares before the ex date , am I entitled to the new shares of the new company ?
I actually had the answers to both of those questions a few years ago , and now I can't seem to find them. So, I have no verification unless I find the answers again which makes my statements speculation which I understand and so should everyone else. If it is not backed up with facts, that is what it is, from anyone.
Kind of strange that the specific information concerning the above is so damn hard to find. I will continue to look though. It is out there somewhere.
I do know one thing absolutely......to err on the side of caution would be in my view the smartest play at this point. GLTA
First, the company has not announced an ex date yet. There are most likely very good reasons for that , and most to do with ticker symbol and other administrative reasons , (not negative just things that have to be done) , that has to do with FINRA approving the spin off and making sure all things are in place.
Another issue is that if one researches spin offs and looks into the news feeds for them, what you will find is some very creative ways to do a spin off with respect to the ex dates and distribution of shares.
One thing I have found to be constant is that if a company spins off a subsidiary , and the shares to shareholders of record are over 25 % of the new company, then the ex date moves to after the distribution of said shares opposed to 2 days before the record date.
In a normal dividend type of situation the ex date before the record date is because the transaction of buying shares takes 3 days to become part of the record.
In this situation, in which 100% of the shares are going to shareholders on record , the ex date is now , I think , after the distribution date.
Now comes the question of : ' Well , if I sell my shares after the record date of the original company , will I loose my shares of the spun off company ?
Also, if I am a shareholder on record , and I buy shares before the ex date , am I entitled to the new shares of the new company ?
I actually had the answers to both of those questions a few years ago , and now I can't seem to find them. So, I have no verification unless I find the answers again which makes my statements speculation which I understand and so should everyone else. If it is not backed up with facts, that is what it is, from anyone.
Kind of strange that the specific information concerning the above is so damn hard to find. I will continue to look though. It is out there somewhere.
I do know one thing absolutely......to err on the side of caution would be in my view the smartest play at this point. GLTA
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In times when you feel low self esteem, disappointment and perhaps even depression.......keep in mind that it may simply be the result of the fact that you are surrounded by ass holes. GLTA
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