$77 Million Not A Good Thing?Presumably BMO and Merrill think it worth $1.80 a share to be a part of Semafo's future production. If so why the selling on the news????
Somebody, one could suspect, is happily mopping such shares off the floor.
Semafo Inc. ("Semafo") (TSX:SMF) has today entered into an agreement with a syndicate of underwriters co-led by BMO Capital Markets and Merrill Lynch Canada Inc. under which the underwriters have agreed to buy 42,800,000 Common Shares from Semafo and sell to the public at a price of $1.80 per Common Share, representing an aggregate issue amount of $77,040,000. The Underwriters have been granted an over-allotment option, exercisable up to 30 days following closing, to purchase an additional 6,420,000 Common Shares. Closing is expected on or about November 10, 2006.