Sqm-r-w

Products SPA3 Investor
1

I hold 695 shares in SQM and overnight 169 x SQM-R-W were added to my SAXO portfolio. There is no cost showing but plenty of profit. Is this a rights issue or something else? Should I do anything?

2

Hi Gary
I have the same, I hold 200 SQM and was given 37 SQM-R-W overnight to the value of US $1,882 for $0
Seems a bit odd, will have to look into it.

3

Hi,
In addition to also receiving a holding of SQM-R-W like Gary and Tim (I have SQM share position), I received a tiny payment of $1.29 in to my IB account which was referenced to SQM-R-W.
Don

4

I also have a position and have received additioal shares. According to the company’s web page they have issued new shares at $50.00 each but we don’t appear to have received any notification of a rights offer but have simply been allocated the shares at no cost- a stuff up somewhere?

5

IB has the following on an information button against my SQI RT WI holding:
“The SEC Rule 201 (aka “Up-Tick Rule”) has been triggered and the related exchanges have implemented a short sale restriction in accordance with their policies.
Short selling is still permitted when the SEC Rule 201 criteria are met.
Short sale restriction is in effect from Mar 30,00:39 to Mar 31, 11:00 AEST.”

The uptick rule is a trading restriction that states that short selling a stock is only allowed on an uptick. For the rule to be satisfied, the short must be either at a price above the last traded price of the security, or at the last traded price when the most recent movement between traded prices was upward (i.e. the security has traded below the last-traded price more recently than above that price).

Check out wiki or Investoperdia for more details n the uptick rule.

Not sure of what this exactly means or the implications

6

Can the SWS team help with what’s going on - presumably SWS are also holding these new ‘shares’ or rights or whatever they are?

7

Tim,

image
image717×265 26.4 KB

The ASX & US Public Portfolios will be exercising option 2 - selling all rights on the market for cash for both CPUR (Computershare Rights Issue) and the SQM Rights Issue.

Regards,
Gary

8

thanks Gary, sounds like a plan. I’m on Saxo, I can see the Corporate event listing the shares but it’s clear to me how you would go about selling the rights. There is no sell option available. Sorry if I’m being a bit dim!

9

Tim,

I assume they’ll become tradeable closer to the pre-market open today, which is around 08h00 EDT I think, or 22h30 AEDT.

Regards,
Gary

10

What would the possible returns be by going with option 2 ?.

11

Gary,

Approximately the current quantity of shares you hold divided by 5.4 * $50.

Regards
Gary

12

Gary & Tim,

SQM Rights Issue remained “non-tradable” on Saxo platform throughout today’s US session. Will have to keep an eye when it does become “tradable”.

Also, my calculation of returns, based on what was showing on the Saxo open Positions pre todays US session, was incorrect. Should be showing correctly on your trading platform now.

Regards,
Gary

13

Hi,

For information - I sold my SQM rights last night via a market on close order with Interactive Brokers

Regards
Don

14

Thanks Don.

Seems to be a bit of difference between broker platforms, as we are seeing with CPUR on the ASX.

Gary

15

Interesting, you don’t appear to be able to do that on Saxo as yet

16

We have 285 SQM on Stake - no SQM-W-R yet. I have sent them a message seeking clarification

17

I sold my SQM rights last night im on IB

18

I’ve received notification from IB that I need to complete a voluntary corporate action regarding SQM & the deadline is tonight. I sold my SQM rights on 31st March. I don’t understand what the voluntary corporate action is - can anyone on the forum help me understand this? I’ve phoned IB but have failed to speak with an actual person as yet!!!
Thanks
Annabella

19

https://www.interactivebrokers.com.au/en/index.php?f=39552#:~:text=IB%20provides%20all%20of%20the,and%20participate%20in%20corporate%20actions.&text=Our%20Voluntary%20Corporate%20Action%20(CA,during%20an%20open%20election%20period.

20

HI Phillip
Thanks for that link - but I think I’m having a blonde/seniors moment! - I still can’t find out exactly what the voluntary corporate action is regarding SQM (since I’ve already sold my SQM-R). Any ideas?