Yesterday, it occurred to me that there was an accurate reason why we are seeing shares being dumped.
Going back before the merger happened. There were up to 5 options presented to Lithium1 stockholders, regarding how they would like their shares to be facilitated through this deal.
The first and default option, was to receive the defaulted 1.96 ratio of Galaxy shares to Lithium1.
Another, of which is relevant and all I'll be talking about in this post, was the "Share Sale Facility".
It's unknown how many of you have this information, so I'll continue writing as if you've never heard of this.
_____________ The Share Sale Facility provides Eligible Participants with the option to convert some or all of the Galaxy Shares which they are entitled to receive under the Arrangement or which they are entitled to receive upon exchange of Exchangeable Shares into cash without incurring brokerage costs. Under the terms of the Share Sale Facility, an execution-only broker ("sale Agent") will be appointed to execute the sale of Galaxy Shares on behalf of Eligible Participants that make a Facility Election to participate in the share Sale Facility. Subject to certain conditions, a Facility Participant's Galaxy Shares WILL BE sold under the Share Sale Facility within FOUR weeks of the issue of those shares following a Facility Election. Galaxy Shares will be sold by the Sale Agent in batches, AT Market Price. ___________________
I could continue quoting the textbook-sized legal document they sent me, however, I should hope that isn't necessary and that you should have a general idea of why the GXY stock is now performing like it is.
Too long, didn't read?- Up to, 4 more weeks of pain. Sorry. But hey, at least now you know why. More importantly, can you take advantage of this? Perhaps :)
-V
GXY Price at posting:
13.6¢ Sentiment: LT Buy Disclosure: Held
