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You would have thought someone had made it a bit clearer before the event.
I think some of those buying yesterday were 'in the know' and realised most would be unaware of the rules for an XC date.
Others probably just got lucky.
StevePI, thanks that makes sense, so:
Price fall yesterday due to people selling, thinking they already had CAI shares in the bag.
Price fall today due to MM's applying a discount on open ?
Very complicated. Just glad I didn't sell yesterday, though I was tempted when I saw the price fall was less than anticipated. Sorry for those who did, but the price seems very cheap today so maybe an opportunity to buy back and have a KRS-focused holding rather than the CAI shares?
Found this information on the web.
Normally! for a cash dividend the record date is 1 day after the XD (normally) But.....
Sometimes a company pays a dividend in the form of stock rather than cash. The stock dividend may be additional shares in the company or in a subsidiary being spun off. The procedures for stock dividends may be different from cash dividends. The ex-dividend date is set the first business day after the stock dividend is paid (and is also after the record date).
If you sell your stock before the ex-dividend date, you also are selling away your right to the stock dividend. Your sale includes an obligation to deliver any shares acquired as a result of the dividend to the buyer of your shares, since the seller will receive an I.O.U. or "due bill" from his or her broker for the additional shares. Thus, it is important to remember that the day you can sell your shares without being obligated to deliver the additional shares is not the first business day after the record date, but usually is the first business day after the stock dividend is paid.
Consider that 6pm is after trading hours, so if you sold yesterday, you're out. That's as I read it. You needed to be on the register at 6pm.
I think it will get really messy!
But it's probably like dividends. I f you hold shares on the record date you get the dividend. But if you sell before the XD date you pass that dividend over to the new owner.
Barclays are correct. You retain your holding and receive the additional shares on the record date. But if you the sell before XC you transfer that benefit.
So to be a bit clearer here!
On the day over 55 million shares were traded........if you sold........ you have forfeited the bonus shares!
On the other hand ........if you bought back in during the same day regardless ......you will be eligible for the distribution!
This is going to get a bit messy !
PC
Barclays were quite specific .......
Shareholders who hold Keras Resources Plc shares on the scheme record date of 6pm on 19 November 2019 will retain their holding and in addition to this will receive 1 Calidus Resources Ltd share for every 3.44229 ordinary shares held in Keras Resources Plc.
The company were correct.
The record date was 6:00 pm on the 19th. Anyone who held shares before that date benefitted.
The only problem is that if you sold those shares before the XC date you transfered that benefit to the purchaser.
I just had a call back from Richard at HL. He had to discuss with the corporate actions team. They are “blaming” it on LSE sending them the ex-cap date. I went over & over it with him, through all 3 RNS which state either the Court approval date, or 19th November (the same date) as being the eligible shareholders. He can see exactly where we are coming from, & agrees it needs looking into, & he would expect HL to help look into it to sort out. Don’t roll over and take this - we were never told anything about holding beyond 19th November, or we all would have! We’ve all got to insist that as eligible shareholders owning on 19th November We get our Calidus shares.
Thanks Billyboy2fromiii............!
some may have been screwed if not the case............ :(
All the best (and it's not......... is it.......:)
Amongst others I fear............ !
Not the co. prob. more so the brokers IMO.
I mean........... if we know after reading the RNS's and chit chatting on here.......... and our paid to do duty brokers don't........?
All the best (pretty shocking TBF ............ :(
Hi,
On the basis that the shares went XC today, then HL appear to be legally correct. It seems that what was meant to happen (distribution based on the record date ) will NOT happen as LSE rules (XC date) will apply rather than Keras's intended date (record date) . HL have specifically told me they will be giving the Calidus shares to the purchaser yesterday and NOT the holder as at 6pm on 19th.
BB2.
I think HL might be correct.
If you sell between the record date and the XC date then the benefit is passed from the seller to the purchaser.
Those are the rules of the LSE.
Same os for XD
Thanks Chesh & SBK - it seems that HL are wrong then.
A more recent mogwhy............. :()
https://www.lse.co.uk/rns/KRS/court-approval-of-the-demerger-reduction-received-p5q1xukharq9i2x.html
All the best (19 th defo in amongst that :)
From the RNS 20th November
“ Eligible shareholders will be entitled to receive 1 Calidus Share for every 3.451963 New Ordinary Shares registered in their name on the record date, which has been confirmed to be 6.00 pm on 19 November 2019.“
Note the following statement by KRS from the demerger document.
" The Record Date is expected to be on or about 19 November 2019 and the Company will notify
the firm date by Regulatory Information System prior to the Demerger becoming effective."
Jesus that’s a massive f*** up if true.
Blimey, I could be getting more free shares I wasn't expecting, as I bought more yesterday.
That is a worry............ :(
Not for me, but for those that did..........!
please keep us updated, Prop has fired one into 'em also..............!
All the best (and maybe shut Google down in doing so ........... ;)
Hi,
I have spoken to HL who say that the Keras shares only went XC on the London Stock Exchange this morning and whoever held Keras shares as at close of business LAST NIGHT will be the holder that will be entitled to keep the Calidus shares. They say that that as far as LSE rules are concerned it is the XC date and not the Record date that determines the holder entitled to the Calidus shares. As far as HL are concerned, it you sold Keras yesterday you have given up the entitlement to the Calidus shares and these will be passed to the purchaser of the Keras shares yesterday.
I have spoken to the Broker/Adviser for KRS who states the Corporate Document on the Keras Website states that the Keras shareholder on the record date would be entitled to the Calidus share distribution and that was obviously the intention of Keras. He has said he is going to speak to RL and the legal team at KRS about this.
However, as things currently stand HL are adamant that if you sold Keras shares yesterday then you will NOT receive the Calidus shares.
The problem appears to be that, for whatever, reason the XC date for Keras on the LSE was 21 Nov rather than 20 Nov.
BB2.