PrefBlog

It will be recalled that LFE.PR.A is undergoing a reorganization; a very important part of this reorganization was:

Shareholders who do not wish to remain invested in the Company under its reorganized share structure will have until the close of business on May 17, 2012 to provide the Company with notice through their CDS participant that they wish to have their Preferred Shares or Class A Shares redeemed pursuant to the 2012 Special Retraction Right, and to surrender their Shares for retraction. On such a special retraction, each holder of a Preferred Share will receive the lesser of (i) $10.00 and (ii) the net asset value per Unit calculated on May 31, 2012; while holder of a Class A Share will receive the net asset value per Unit calculated on May 31, 2012, less $10.00. Shareholders interested in exercising such retraction right should contact the CDS Participant through which they hold the Shares for further information and instructions as to how to exercise this right. Shareholders should note that the requirements of any particular CDS Participant may vary, and that Shareholders may need to inform their CDS Participant of any intention to exercise this retraction right in advance of the May 17 deadline. Payment for the Class A Shares or Preferred Shares so tendered for retraction pursuant to the 2012 Special Retraction Right will be made no later than June 19, 2012.

So – the company has known what the consolidation ratio was going to be for which issue (either the capital units or the preferreds) since … oh, call it the morning of May 18. In my innocence, I had assumed that the details of the consolidation would be made available on the NAV date of May 31 (or June 1, anyway!):

If more Class A Shares are tendered for retraction under the 2012 Special Retraction Right than Preferred Shares, the outstanding Preferred Shares will be consolidated so that following the retraction pursuant to the 2012 Special Retraction Right there would be an equal number of Preferred Shares and Class A Shares outstanding. Similarly, if more Preferred Shares are tendered for retraction than Class A Shares, the outstanding Class A shares will be consolidated so that again there would be an equal number of Preferred Shares and Class A Shares outstanding following implementation of the 2012 Special Retraction Right. The Company may implement this consolidation by adjusting the number of 2012 Preferred Shares, 2013 Warrants and 2014 Warrants to be issued to holders of Preferred Shares, in the event a consolidation of Preferred Shares is required.

No announcement has yet been made, so I inquired; the answer received was:

A news release will likely be disseminated close to the June 19th Special Retraction payment date.

Knowing the consolidation ratio is critical when evaluating credit quality of LFE.PR.A; it is also critical when evaluating the option value of LFE. But good old Quadravest is going to keep us in the dark; and I cannot even begin to fathom the purpose behind the delay.

All I can suggest is that according to the 2011 Financials, there were 10,712,753 units outstanding on 2011-11-30 and this number is reflected for each part of the unit on the TMX Money Website. Another possibility is to check SEDAR for filings that are only semi-publicized.

What a total waste of time.

This entry was posted on Wednesday, June 6th, 2012 at 9:18 pm and is filed under Better Communication, Please!, Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.