Originally posted by COD
Sorry Squizzed, but I disagree. It wasn't a requirement to start trading again, but it is still a regulatory requirement. I don't fully understand but I think they have 12 months to comply.
So I think we will see some more divestment in HVT when the SP bounces back to a level that JC finds acceptable for shareholder interests.
1 November 2018
Portfolio management update:
MMJ Group Holdings Limited (ASX: MMJ) ("MMJ") notes that, as part of its active portfolio management approach, it has lodged a notice with the TSX Venture Exchange (“TSX-V”clear.png stating its intention to divest up to 5 million of its 48.333 million* shares held in Harvest One Cannabis Inc. (TSX-V:HVT) ("Harvest One"). The notice is a Canadian regulatory requirement as MMJ’s current shareholding of approximately 28% in Harvest One is more than the 20% ownership threshold. Lodgement of the notice permits MMJ to divest the shares at any time at its discretion, either through the TSX-V and/or direct with private buyers,
after the expiry of a seven-day notice period.
Becoming a 10% Shareholder of a Canadian Public Company
What Must I Do if I Become a 10% or Greater Shareholder?
What you have to do when you become a 10% or greater shareholder depends on whether or not you are an eligible institutional investor. If you are, then unless you are disqualified,you are eligible to use Canada’s alternative monthly reporting system (AMR). You will have to file your initial AMR report with the Canadian securities regulators within 10 days of becoming a 10% shareholder. After that, you will only need to file another AMR report within 10 days of the end of any month in which your ownership position, measured at month end, has increased or decreased by more than 2.5% from the last reported position or decreased below 10%. As an eligible institutional investor, you will also be exempt from Canada’s insider reporting requirements unless you are disqualified from the insider reporting exemption.
What Happens if I Become a 20% or Greater Shareholder?
Do not become a 20% or greater shareholder without first speaking with Canadian legal counsel. Canadian securities laws prohibit acquisitions of outstanding securities of an issuer that result in an investor holding 20% or more of a class of voting or equity securities of a Canadian public company without making a formal takeover bid (that is, a public tender offer).
There are a few exceptions to this requirement, including purchases through private agreements and limited public market purchases, but it is important to get specific legal advice about them before increasing your ownership level to 20% or more.
Depends how you read it I guess. I don't get why the TSX didn't stop the PTL deal if MMJs holdings are a problem.
Whatever the outcome, JC pulling the pin on selling now appears to be taken well.
