Diversified Royalty Corp T.DIV

Cormark in action

[Safetrader]

Well it is good to see they are using some of their over allotment shares for market stabilization.
They purchased some at $2.81 this PM. I purchased mine 2 years ago and won't sell them any.

[Dadsaid2]

I was wondering how Cormack handles these 16.5 million shares. Are they obligated to sell them to clients at $2.80? Can they sell some or all in the open market at a greater price and pocket the profit as gains on their books? Im obviously not an expert on the rules of these type of offerings. Any experts out there? ..THX...GLTA....C

[flamingogold]

Not an expert on this but in the split share arena that I trade, bought deals are numerous and not uncommon for institutions to short the brokered deals at higher prices and buy back when they reach the bought deal price, which they ALWAYS do like today. And sometimes, they overshoot to the downside. I guess you could say a bonus to doing the deal. Not saying that this occured here but why I never

[Safetrader]

The offering is 14M shares at 2.80 plus overallotment of 2M shares they can access in part or in full for market stabilization or keep / resell.  They normally use a portion to prevent the price to go south.  Main reason they bought to resell to other brokers or large customers and of course they wouldn't want us to dump and bring price down.  I don't think there is any

[nedstar71]

How could they use the overallotment of 2M shares for market stabilization? Other selling them or using them to cover a short, neither of which is good for the share price I don't understand how they would be used in a manner that would be positive influence on the share price.

[Safetrader]

The note is in second paragraph of following NR. https://www.diversifiedroyaltycorp.com/wp-content/uploads/2022/11/News-Release-DIV-Common-Share-Offering-Increase.pdf Now I was also unaware how they can do this. Yesterday looking at TSX transactions last hour Cormark were purchasing shares at $2.80 $2,81. They could have put themselves on Bid and Ask  one under Anon or other underwriter. If

[nedstar71]

If anything them not having the overallotment and just buying those shares on the open market would be more helpful. Unless they are trying to keep a cap on the price there is no benefit to them putting shares into the market, nor would it do anything to stabilize the price imo. I understand what the NR says but still don't get it.

[Safetrader]

My understanding of the deal,  Cormark and other Dealers of the syndicate are buying at $2,80 less a commission (normally the case on a bought deal) .  The extra 2M shares at $2.80 is to prevent purchasing and selling power on the market. That means for a while the syndicate will buy and sell qties in the marlket and to each other, to offset the price from doing large movement up or down