Feb. 21 at 12:39 PM
$JFR I am short here at
$8.60. The subscription price is
$8.20. Even after buying 5 rights in the secondary market at 2 cents each, you would still have an average price of
$8.30. There is
$0.30 pure arbitrage (around 4%). And you can bet people will cash this arbitrage in next week as soon as the new shares start hitting the accounts on 25-26 February.
CEFConnect updated the new NAV and it is a massive drop at
$8.95 (
$0.16 drop) due to the new shares being issued at discount - so there is a dilution and the offering is not accretive to NAV. Quite the opposite.