RE:RE:RE:RE:RE:again..PG comment on TGZ....Dogwag
Under the agreements, 32,500,000 common shares will be issued on a bought deal basis at a price of $1.05 per common share through a syndicate of underwriters.
Note the words in bold; the underwriters would agree to no more than $1.05 per share; in other words, Teranga did not set the share price of $1.05 for the offering.
Additionally, with the increase in share count Mr. Mimran and associates would be required to add to their TGZ position to maintain their (agreed) percentage of TGZ stock – How can you suggest and/or conclude that Mr. Mimran should/could/would pay more per share than the underwriters would pay*? – The total number of shares offered by Teranga, 62,000,000, was set after Management revealed the number of TGZ shares they were placing in the offering, (which was 32,500,000 shares) and the number of shares Mr. Mimran elected to purchase.
*Mr. Mimran’s agreement with TGZ regarding %ownership probably defines price per share costs/purchases.