GREY:VGMNF - Post Discussion
Post by
R_J_ on Jan 29, 2015 2:57pm
News - $200 Million Private Placement.
Osisko announces $200 million bought deal private placement
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https://www.osiskogr.com/wp-content/uploads/2015/01/04-2015-JANUARY_21_EN_Bought-Deal-Financing.pdf
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Louis James Comments:
Quote:
The merger with Osisko Gold Royalties isn’t final yet, but we’re commenting on this news since it’s pretty much a done deal at this point.
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The dilution is about 13% (on a pro-forma basis), which sounds high, but frankly we like it, because the money will almost certainly be used to buy another royalty.
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And this is the time to buy, while prices are down and financing can be hard to come by (ultimately we can’t determine the value until we see what they acquire).
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As one reader asked, isn’t this a contradiction in light of the fact that management said they would buy back up to 5% of their shares?
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No, because buybacks are generally done when a stock is weak, and we agree that OR.T will be trading at a much higher level in the years to come.
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Unquote
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RJ
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