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Re: yestommj post# 46905

Friday, 10/31/2014 12:21:48 PM

Friday, October 31, 2014 12:21:48 PM

Post# of 112677
Barring any other big news, I think a lot will depend on when the ex-dividend date is. Even though MCIG stated in their PR that it would be on the day of the effective statement from the SEC, The exchange has the final say on the date and the SEC has the final say on the method used for calculating it. The two methods state that it will either be three business days before the record date (the day after the effective statement) or the day after the payable date (when the VCIG shares are mailed to our brokers several weeks later).

If the first method is used, there will be pressure for a sell-off from people who have been waiting for the dividend before selling their shares. Without other news, people might be tempted to flip their MCIG shares until VCIG starts trading several weeks later.

If the second method is used, people won't be able to sell until their brokers receive their VCIG shares and VCIG trading will probably start at the same time. This will probably put immediate upward pressure on MCIG's pps since they will still own 49% of VCIG.

Of course, PR's whether good or bad, can offset any of these assumptions. This is all JMO.

Les