Underwriter Responsibilitiesthe Underwriters .....have agreed to purchase for resale to the public
(TSX VENTURE:PXT) is pleased to announce that it has entered into anagreement with a syndicate of underwriters led by FirstEnergy CapitalCorp. and including Scotia Capital Inc., Haywood Securities Inc.,Raymond James Ltd., TD Securities Inc., Peters & Co. Limited andWellington West Capital Markets Inc. (the "Underwriters") pursuant towhich they have agreed to purchase for resale to the public, on a boughtdeal basis, 9,000,000 common shares of Parex at a price of $5.80 percommon share resulting in gross proceeds of $52,200,000 (the"Offering"). Parex has also granted the underwriters an over allotmentoption, exercisable in whole or in part, for a period commencing atclosing of the Offering and ending 30 days following closing of theOffering, to purchase an additional 1,350,000 common shares at the sameOffering price which, if exercised, would increase the total grossproceeds to $60,030,000.
Hopefully, the paragraph above explains a little better the responsibilities of the underwriters and the role that they play. They have rules and regulations to follow according to the securities governing bodies and oddly enough what may appear on the surface to hurt the small retail investors in fact often protects them. Might some things get by - sure but for the most part the system works properly.