RE:Over at the c_o.ca siteI suppose you could be correct in your assessment of recent events around the trading of Nanoxplore shares, 1 Student, however I tend to disagree. ( Hard to believe, I know)
In the first place, I cannot believe that National Bank, or Canaccord for that matter,would jeopardize longer term relationships with Nano for a relatively small, short term trading profit. Also, I suspect that it would be a contravention of their fiduciary agreements not to act in the interests of their clients.
I also suspect that Nano has need of the money for some imminent investment and was not prepared to risk going short on working capital. Given what has been projected about the possible longer term cash requirements, they may have been planning on a much larger raise at somewhat higher prices, but market conditions precluded that option.
The facts on the ground suggest that although market conditions and circumstances leading up to the $30 million cash raise were far less than ideal, not having the money would have been significantly bigger problem especially if the funds were to be directed to building a new plant.
The fact that the market was trading at $5 when the issue announced, and was under pressure at that , suggests that the issue price of $4.60 was well in line with other bought deals of a similar nature.
All in all, both underwriters and those who have bought the new issue are currently not happy campers. However, Nanoxplore has the funding necessary to continue with the game plan and need not focus on day to day share price fluctuations.
Wherever the shares end up on settlement date (Feb 27) will matter little if Soroush and team can employ those funds to keep building the dream. This whole process, from the placing of Nano shares into the 'CS whatever' index to the execution of the recent financing has been a bit of a dog’s breakfast, but not, I speculate, malfeasance on the part of those you outlined.
Or Not!