RE: NewsWell as an EXM shareholder, I am ecstatic. I had hoped to participate in a financing for EXM if and when it was announced, but I am far more happy with this arrangement. It ensures that Hothcschild has a vested interest in the success of EXM as a junior, and cements the relationship between the two companies. It serves as an endorsement of the quality of projects EXM controls, and the strength of management to continue to close acquisition deals that are in interest to developers. And it also ensures that the much needed cash will be in the treasury and remove a major source of uncertainty from the market. Those shares are not going to find their way back to the market, and just reviewing the last few weeks of trading will underline exactly how damaging cheap paper is to the strength of the market for a company's stock.
Three million bucks is a lot of cash to advance a junior. Its not something you hand over as charity. Hothschild got a good deal on that stock, but more importantly they have a hell of a lot of confidence in EXM to make that deal happen.
cheers!
COACH247
Voluntary disclosure: I own shares of EXM and the company is a paid advertiser on my website.