KAT Exploration Inc (KATX)

[White Cobra]

SEC Says Possible Hold of KATX for BVIG

If the number of issued shares of BVIG is 25% or more of its value, I think KATX owners will have to hold KATX stock until one day after the pay date. The pay date, via the PR, can be up to 45 days.


Before you PM me, or reply publicly, read the following.

First, go to this link.
www.investopedia.com/articles/02/110802.asp


Note the following statements:

Ex-date or Ex-dividend date - On (or after) this date the security trades without its dividend. If you buy a dividend paying stock one day before the ex-dividend you will still get the dividend, but if you buy on the ex-dividend date, you won't get the dividend. Conversely, if you want to sell a stock and still receive a dividend that has been declared you need to sell on (or after) the ex-dividend day. The ex-date is the second business day before the date of record.

*Note: Different rules apply if the dividend is 25% or greater of the value of the security. In this case, the Financial Industry Regulatory Authority (FINRA) indicates that the ex-date is the first business day following the payable date. For further details on dividend issues, search FINRA's website.


Now, here is the link to FINRA regarding this:

www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p003997.pdf

Here is the key passage worth noting:

Dividends Or Distributions 25 Percent Or Greater Than Security Value
The second method, under subparagraph (b)(2) of Rule 11140,
provides that for dividends or distributions that are 25 percent or greater of the value of the subject security, the ex-date shall be the first business day following the payable date. For example, if an issuer has announced August 10 as the record date and August 31 as the payable date, then the ex-date will be September 1, the first business day after the payable date. In this example, September 1 is the day on or after which a buyer
would purchase the security without the dividend and, therefore, the day on which the price of the stock is adjusted downward. In this example, a seller of the security on August 15, even though the holder of record to receive the dividend, would have to relinquish the dividend to the buyer. Indeed, because the value of the security on August 15 has not yet been adjusted downward to reflect the dividend distribution, the seller in this example would be unjustly enriched by keeping the dividend. The seller would have received the value of the dividend twice: first, as
fully reflected in the unadjusted price of the stock on August 15; and secondly, as subsequently paid by the company to record date
holders.


All this being said, I am not specifically knowledgeable on what will constitute the value of BVIG. Is it going to be 25% of the Authorized Shares or 25% of the Outstanding Shares? I am sure someone here can answer this.

Also, will this be based on the current O/S and-or A/S or will it be based on the 500,000,000 A/S that will be present after the BVIG change is completed?

Depending on the answers to these questions, the answer to this entire ex-date question may be answered by the current A/S of KATX.

Peace Out - White Cobra