MGX Minerals Inc (MGXMF)

[crunch55]

Unless you were actually shorting the stock you dont need to cover.If you own the stock before the end of June then you are eligible for the dividend.

Technically and fundamentally, MGX Minerals Inc. is in a highly interesting situation right now, especially thanks to today´s news, in which the record date of the proposed spin-out of its wholly owned subsidiary, ZincNyx Energy Solutions Inc., has been disclosed: If you are a shareholder of MGX on Friday, June 29, 2018, you will receive the payment of a dividend: Shares of ZincNyx, which company has been proposed to become a standalone public entity to be listed on an exchange.

Over the next 60 days (until the record date), a run on the shares of MGX could occur as such dividends are quite rare in the junior resource space and typically highly lucrative as no costs are involved for existing shareholders to receive "free shares" of a new public company.

• What makes this spin-out even more attractive is that the spin-out shares are not expected to be subject to any statutory hold periods, i.e. the shares will be free trading on the first day of listing on an exchange.
• What makes the next 60 days potentially "explosive" is that if you are short on June 29, you will have to pay the appropriate dividend back, which is virtually impossible because MGX wholly owns this private company. So anyone that is short on that day will be somewhat in "trouble"... So over the 60 days, we may see some significant short covering and "turn of the tides" in the market.
• What makes this spin-out so interesting for shareholders to hold is that tens of millions of dollars have been invested into the ZincNyx battery storage technology over the last years by Teck Resources, the original private company that Teck acquired, and Canadian government funds. Importantly, the technology now looks ripe for demonstration in New York City later in 2018 and commercial deployment (initial target production of 1,000 units annually) by early 2019.
• On April 4, MGX announced that the final assembly, site preparation and deployment are underway for its initial lithium extraction system for oilfield wastewater (petrolithium). The installation at 2 separate petrolithium sites in Alberta is expected to be largely complete by June 2018. Therefore, another good reason for investors to own the stock may emerge over the next 30-60 days.
Read more at http://www.stockhouse.com/news/newswire/2018/04/30/short-squeeze-ahead-of-dividend-payment#1p7MQagYcHWyGS2T.99