Real matters solution

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Hi Dan and Mathieu
Regarding real matter solutions, the following link says that Mr. Smith has a plan to sell 750000 shares of his own till next year. How is it going to affect the price?

https://financialpost.com/pmn/press-releases-pmn/business-wire-news-releases-pmn/real-matters-ceo-establishes-automatic-securities-disposition-plan-and-announces-intention-to-complete-donation-pledges-to-holland-bloorview-and-sunnybrook-hospital#:~:text=TORONTO%20—%20Real%20Matters%20Inc.%20%28“Real%20Matters”%20or,Staff%20Notice%2055-701%20and%20the%20Company’s%20Disclosure%20Policy.

Shouldn’t we expect more price declines while automatic disposition is happening?
Than you

Thank you

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Asked on September 16, 2020 2:00 pm
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Thank you!

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Posted by Elham Ghiasvand
Answered on September 16, 2020 7:34 pm
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Hi there,

It is important to note that Mr. Smith's disposition plan has been pre-determined for some time. His reasons for doing so are completely unrelated to the company's performance and despite disposing of 15% of his stake, is still going to hold on to a majority of his shares.

Furthermore, on average 476K REAL shares trade daily. This means that Mr. Smith's 750K share disposal over the course of a year is unlikely to have any material liquidity impact. Also a reminder, this isn't a public offering, nor is it dilutive to shareholders. This is simply one insider disposing of shares (completely unrelated to performance) which is unlikely to affect the company's share price in any considerable way.

Mat

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Posted by Mathieu Litalien
Answered on September 16, 2020 7:06 pm
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