Question about prospectus offering Hi i'm quite new to investing and TWD is something I would like to invest in. Recently there was a post on Tweed's prospectus offering. I just wanted to make sure I understood the article correctly and didn't misinterpret. And wanted to know what this offering means to retail investors such as ourselves.
Here is the excerpt with questions below:
"On May 14, 2014, the Company announced that it had closed a short form prospectus offering, on a bought deal basis, of 4,687,500 common shares for aggregate gross proceeds of $15,000,000 (the "Offering"). The Offering was completed at a price of $3.20 per common share (the "Offering Price") by a syndicate of underwriters led by GMP Securities L.P. and including Jacob Securities Inc. (the "Underwriters"). The Company also granted the Underwriters an over-allotment option to purchase up to an additional 703,125 common shares at the Offering Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering. Such over-allotment option remains outstanding unexercised as of the date of this MD&A."
Source: https://www.newswire.ca/en/story/1364143/tweed-announces-fiscal-q1-results-and-provides-update
1) In simple terms, what exactly is a "short form prospectus offering"?
2) In the article, does it mean Tweed was able to raise and receive $15million from investors in this case the "underwriters" which are GMP and Jacob Securities?
So to clarify, this means GMP and Jacob essentially paid $3.20 for 4,687,500 common TWD shares?
3) About the "over-allotment option" Is this an option for GMP and Jacob to purchase an extra 703,125 shares at the price of $3.20, within 30 days from which the prospectus offering was closed?
4) If I understand this correctly, based on the current stock market price of Tweed right now at $3.03. This means that GMP and Jacob investors who bought the 4,687,500 at $3.20 shares each, if they sold right now, would be taking a lost?
5) As a retail investor, is it safe to assume that when larger investors bought at $3.20 and the stock price now at $3.03. It may be a good buying opportunity? I'm assuming the larger investors who bought at $3.20 want their share prices higher to profit. So when they bought at $3.20 I assume they may have information or research which at least shows that TWD's value is at least $3.20 or will be that sometime in the near future?
6) On a side, what type of stock price, market, or news manipulation should I be aware of as an investor? Are there blogs, articles, or websites out there to teach you to be more smart, informed and alert protect one from this kind of stuff?
7) What are some good websites, books or resources that you can recommend out there to learn about options, warrants, fundamentals, market behaviour etc?
Thank you for your time and help I really appreciate it.