Far sooner than popularly anticipated, the PPX stock GASTRTY was halted and delisted this morning, for a payout of POP$100 per share. The proposition promised a payout if China and the U.S. sign a binding treaty concerning their greenhouse-gas emissions by 2009. Over the weekend, the two nations joined nearly 200 others in a deal to phase out hydrochlorofluorocarbons (HCFCs) over the next 13 years.
Trading at $52.25 at close, the market was (just) predicting correctly. Slight ambiguity in the proposition's wording may have contributed to the lack of optimism—though a dangerous greenhouse gas, HCFCs form just a fraction of the total emissions. Carbon dioxide, on the other hand, makes up over 80 percent of greenhouse gas emissions and is more likely to be the problem one might expect an international treaty to tackle. Nevertheless, an agreement concerning greenhouse gas emissions was signed by China and the United States, and, with the requirements technically met, the proposition paid out. Be on the lookout for a more expanded proposition on this subject.—Abby Seiff