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Canadian Stocks/Bison Petroleum and Minerals Ltd.

Expert: Steven Taylor - 4/12/2010

Question

April 12, 2010

I bought Bison and hold three certificates. 44 shares. May 31, 1971 (#19099); 28 shares November 25 1960 (#2628) and 28 shares Nov 25,1960 (#2627)

Are the shares worth anything? How about the original certificates?

Thanks
E.A. Larose

Answer
Ernest, Bison Petroleum is one of the most asked about companies I have, which suggests there are a lot of certificates floating around out there. That is likely because of an unusual stock split sequence they did in 1987. The Company changed its name to United Bison and did a 1 for 100 reverse stock split immediately followed by a 100 for 1 forward split. The reason for the two splits was they had a lot of shareholder with under 100 shares. If they had less than 100 shares, the reverse split would move them to less than 1 new share, and they would receive cash in lieu of the new shares. The 100 for 1 forward split would then make all the other shareholders whole again. If you add up the certificates, you would have 100 shares.

In 1990, they were acquired by Nalcap, another public company, who issued 1 share of Nalcap for each 7.7 common shares of United Bison. In 1996, Nalcap changed its name to Arbatax International. Arbatax then did a 1.5 for 1 forward split. In 1997, the Company changed its name to MFC Merchant Financial and they acquired a Swiss Bank and entered the merchant banking business. Later they became MFC Bancorp. One of MFC's major investments was in KHD Humboldt Wedag International, a multinational equipment and engineering design firm mostly in the cement, coal and precious metals industry. In 2005, MFC changed its name to KHD Humboldt Wedag which assumed its NASDAQ listing.Last month KHD split into two companies - Terra Nova which trades on the NYSE for about $14.25 a share, and KHD which trades in Germany for about 8.70. They also distributed the other businesses and investments of MFC to shareholders as Mass Financial, which I don't believe trades in Canada anymore. I believe it is now trading in Vienna for about 6.50 a share.

Because of this complex web of splits and companies, as well as the recent division of KHD, I suggest you contact a broker to help you determine if your shares are valid and, if so, will be able to contact all the respective transfer agents on your behalf and obtain the new shares.