Sears Holdings Corporation (NASDAQ:SHLD) announced that Sears Canada Inc. has filed a Registration Statement with the SEC Commission in connection with Sears Holdings’ previously announced rights offering of up to 40,000,000 common shares of Sears Canada. The Registration Statement is automatically effective as of October 15, 2014. Under the terms of the rights offering, Sears Holdings is distributing to its stockholders, at no charge, one transferable subscription right for every share of Sears Holdings common stock held of record as of 5:00 p.m., New York City time, on October 16, 2014, the previously announced record date. Each subscription right entitles the holder thereof to purchase 0.375643 of a common share of Sears Canada for each share of Sears Holdings common stock owned as of the record date at a purchase price of U.S.$9.50 per share. In addition to being able to purchase their pro rata portion of the shares offered based on their ownership as of the record date for the rights offering, stockholders may oversubscribe for additional Sears Canada common shares as described in the Registration Statement. The subscription rights are listed on the NASDAQ Global Select Market under the symbol “SHLDR.” Unless the rights offering is extended, trading of the subscription rights on the NASDAQ Global Select Market will stop at the close of business on November 4, 2014. Source: Filing
Spinoff Monitor: The rights (which currently trade as SHLDR) are on sale for $0.34 each and allow you to buy SCC.TO at a 7.5% discount (including the cost of the right).
