Uranium spinoffs

[Pommiegranite]

Hello

I know there's no hard and fast rule to this but:

When a company spins off its Uranium exploration in a new IPO, do existing shareholders usually have to have a minimum $ holding already in the parent company?

Thanks

 

[alankew]

Pomiegranite is that a liver bird-Wolves myself but anyway in my experience so far,there is no hard and fast rule.I recently bought a minimum marketable parcel in EDN hoping that as in other IPO spinoffs that this would entitle me to a guaranteed minimum amount.Unfortunately in this particular case they decide to do a pro rata offer-more you have more you get.Not having the money to commit any more my holding gave me eleigibilty for $110 worth of U spinoff shares!The problem with this is that they also said that if an existing holders ends up with an unmarketable parcel in the new company,management have the right to refuse the application.I also applied via public for the minimum but doesnt look good.As is ay no hard and fast rule,sometimes 1 share will qualify other times it is pro rata-what company are you looking at.PM me.Al