In that case as per 212 T&C, you should be able to claim 16.55CAD per old share, or 19.75CAD per new share.
They are causing themselves additional work if they’re not paying out at the correct rate.
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I am not disputing the rate, to be honest I have not yet checked that. I am disputing the selling of a stock in my portfolio due to software limitations. EDIT but I believe the reason now given is due to the stock being fractional. This was not an issue when Tesla or Apple performed their stock splits.
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I dont think we can dispute the selling of a stock that has always been in our T&C. Its certainly something I read before signing up last year.
I don’t think it has been. Perhaps you could point it out to me.
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I cant find a cached old version, but there are old threads about other mergers on the forum that confirm the same process.
I have read the article. It is not legal though
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Why is it not legal - other brokers have similar policies. Are you saying they are not legal as well?
If they do the same thing… they are also not legal! You cannot close a clients position in a stock unless the company is outwith the products boundaries - hence the closing of a bunch of Chinese stocks last year contained in T212’s clients ISA’s. Stocks are a “physical” asset - tangible and subject to all the laws governing personal assets. You cannot just close a clients stock possession due to software limitations.
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I think you are missing the point. They are not closing a position, the position in its form no longer exists, and they have no choice in this. If they are unable to facilitate the conversion, they are obligated to give you the cash equivalent value.
The position does exist as it is now part of another company. a platforms limitation does not change that and stock exchange rules does not allow brokers to make this decision on behalf of their clients.
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If you believe T212 acted illegally, I suggest you follow the formal route and submit a complaint, then escalate it if you do not get a satisfactory resolution.
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On the case Alien. Thank you.
Can I check if investors holding Tilray in their Invest / ISA accounts had their positions liquidated for cash after the merger with Aphria on the 5th May. Many thanks
The holders of Tilray kept their shares, as they already had the company in their Portfolio. The holders of Aphria could not get the equivalent Tilray shares since, as mentioned, this conversion is not possible. The Aphria holders never had the Tilray shares corresponding to their Aphria share in their Portfolio to begin with.
In a sense, the merger is not the exact same shares changing the company they are in. Instead, the old (Aphria) shares get nullified, and the equivalent new (Tilray) shares come in their place. The distribution of these new shares is, however, not something that we offer as a service currently. Hence we sell the shares on the achieved price on the day of the merger and give the cash equivalent to the clients.
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In agreement with @Bullish-Bear here. Please let us know if you get your desired resolution from this
This was the rate mine were sold for. I made double the loss I was expecting in the end. I should have sold the week previous. I would have been better off and just bought back in with Tilray myself.
Your calculation on figures looks different to what I received.
Edit - ignore me they look pretty much the same when converted from CAD to USD.
Really, this is bit too late, as not only have I lost money following the merger of Tilray and Aphria but number of other people have too. I was expecting a share of Tilray and instead received cash which is much lower than if had I know, I would have sold it ages ago.
The Tilray share price at close on Friday was $16.18
$16.132 is hardly much lower than that, you could have reinvested and see that $0.05 unrealised gain - and either way the difference is just reflective of market movements out of everyones control?
The Tilray price on the 6th May, dropped under $14.
If you ignore the financials for a moment. Aphria and Tilray merged. The new company is Aphria with the Tilray name. Aphria’s board are in place and the Aphria’s CEO is running the new company. The only part of Tilray which is still part of the new company is the name.
If you held either of the old stocks you should have been given the new company stock as per the agreement by vote of both old companies shareholders. Had Trading 212 liquidated both old companies stocks and given cash equivalent it would be ethically wrong as that is not what happens when there is a merger of this sort. What makes it even more unethical is that if you owned the old Tilray stock you got to keep your position in the new company (Aphria with the Tilray name) but if you owned Aphria you had your position liquidated due to a software limitation.
Now back to the financials… It is irrelevant that on a particular date the stock dipped below $14. It also peaked at over $17… but the point is that for a lot of people, this was a long term holding that was sold without shareholder warning. You cannot sell someone’s holding without a legal reason - and to sell one half of a merger due to a software glitch is not good enough for me, nor the people advising me.
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I stand by @Bullish-Bear . Had same situation with Pfizer spinoff - Viatris. My Viatris shares also got liquidated against my will at xx.xx$ price. I honestly dont care about software limitations. I am the owner od the stock or any other asset you can offer in the platform and I can do with them whatever I want. If you as @Team212 behave like that during mergers and spinoffs seems clear for me that during much more worse situations my assets will just vanish in space IE bankruptcy of t212 - in normal situation it would take few months but I would get back my assets and transfer them to other broker. In this case i believe t212 will just sell all my positions to get back as much as cash as they need. I dont see any difference between those situations. You simply as a broker sell my assets. MY assets which belong to ME by the LAW and therefore you simply break the law. Luckily my PFE position was just small and i didnt care much about it. But on the other hand someday in the future this situation might affect me on a bigger scale. I simply cant imagine losing MY ASSETS which by the law belong to ME just because off your limitations. Not even mentioning about all the illegal aspects of this actions.
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