GREY:EORBF - Post by User
Comment by
JayB1on Jul 26, 2013 2:31pm
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Post# 21633124
RE:Placement
RE:PlacementGreat! 2 reasons. One is to ask a higher price.... They may have found an other dealer... News around the corner... Here is the transation
The Orbit investment is not yet concluded
July 26, 2013 at 8:03 | Silver
Updated July 26, 2013 at 13h32
The company Orbite Aluminae (ORT) announced Thursday after the markets closed the postponement of the closing of its offering of $ 35M announced in June.
In a brief statement, orbit indicates that the date is "postponed to a later date to be agreed with the Agents". The reasons for the delay were not specified.
The investment, to be concluded on 22 July, is through a firm led by Euro Pacific Canada and including National Bank Financial union.
The gross proceeds of the Offering may be up to $ 50M. It includes the issuance of units consisting of one Class A share and one half share purchase warrant at $ 0.70 per unit.
Each warrant will entitle the holder to purchase one Class A share at an exercise price of $ 1 for a period of 36 months.
According to analyst Michel Nadeau, such deferral is not a frequent occurrence in the financial community.
"Orbit made a mistake by not giving the reasons for the postponement," commented Mr. Nadeau immediately.
The analyst cites two possible reasons, or the warmth of the market against the issuance of shares, or because the company management wants an upward revision in the price of units.
In June, Orbit has a contract for the sale of its entire production of metallurgical alumina to a subsidiary of Glencore Xstrata for a period of 10 years, and "it is possible that management believes that the contract justifies a price high for the show, "said Mr. Nadeau.
The net proceeds of the offering will be used primarily to complete the alumina plant in Cap-Chat, and for general corporate purposes.
The title reacted little to the news, down two cents to $ 0.71 early Friday afternoon at the Toronto Stock Exchange.