Canadian Stocks/Platero Resoucres bought over by Yamana
One more question on my old shares. I have 10,000 shares of Platero Resources since year 2000 via a friend (contract agreement) and recently when I request to cash it out, he told me Yamana bought over Platero and the deal was 28 Platero shares exchange for 1 Yamana shares. However, I googled and saw the deal was 1 Platero share for 1 Yamana shares plus 0.5 Yamana warrant. As I am not an expert in investment, please advise if this is correct or if there were any reverse stock split. I think my friend is trustworthy but I think I should check it up to make sure this is correct. Thank You
Waiyin, from the information I have available, Yamana did acquire the privately held Platero on the basis of 1 Yamana share plus 0.5 of a Yamana warrant for every 1 Platero share in 2001. However, in 2003, Yamana did have a reverse split on the basis of 1 new for 27.86 old. Not quite 1 for 28, but close - the difference on 10,000 original shares is about 2 shares. The reverse split was necessary in order for Yamana to meet the listing requirements of the American Stock Exchange. I do not believe there were any additional capital changes after the reverse split, but Yamana does pay a dividend. Yamana holders should also be entitled to, and receiving, the quarterly cash payments which are not insignificant.