From the other board.Is this history repeating itself?
Five years ago Thompson and co. entered into a bought deal with Canaccord.
>>11/5/2004 8:19:12 AM ET News Release Index
Oncolytics Biotech Inc. Enters into a Bought Deal Financing for $10 Million
CALGARY, AB, ---November 5, 2004 - Oncolytics Biotech Inc. (“Oncolytics”) (TSX:ONC, NASDAQ:ONCY) announced today that is has entered into a bought deal agreement with Canaccord Capital Corporation. Under the agreement, Canaccord has agreed to purchase 1,504,000 units (the "Units") at a price of $6.65 per Unit, resulting in gross proceeds to Oncolytics of $10,001,600. Each Unit consists of one common share and one-half of one common share purchase warrant, with each whole common share purchase warrant entitling the holder to acquire one common share upon payment of $8.00 per share for a period of 36 months following the closing date. The net proceeds from the offering will be used to expand and accelerate Oncolytics’ clinical trial programs and for general corporate purposes. The offering is expected to close on or about November 25, 2004.<<
In exchange for 10 million dollars Thompson and Co. gave a notoriously shady hedge fund (Amaranth) 1.5 million shares (of which Amaranth promptly disposed) and the accompanying warrants which Amaranth then used as a hedge as they shorted Oncolytics stock for well over a year, running the share price down from over C $7 to under $4 -- roughly a 50% drop.
Thompson's deal with the devil sent Oncolytics stock into a tailspin from which it has taken years to begin to recover and has left thousands of individual investors so far underwater that it's taken nearly five years for them to begin seriously comtemplating returning to even in their investments.
And then, just as things are looking up for those thousands of investors, Thompson and the gang do this.
Seems Thompson enjoys making history rhyme. If only, for the sake of longterm investors, he were a better poet.