RE:RE:RE:RE:RE:RE:bababock, You're Both Misinformed & MisleadingThe support at 70 cents was unusual, the stock was supported by over a million shares at 70 cents. For investors not receiving any direct benefit from the bought deal, there is no reason to add liquidity at this level specifically. This support appears to be protection for the deal. This arrangement is normally explicitly agreed as part of the deal and will cover a minimum number of days or maximum dollar amount of support, whichever comes first. Coincidentally, the sindicate presumes to provide less monetary support than the fees collected as part of the deal.
Also, having not seen the prospectus, it is possible that the special warrants cannot be exercised immediately upon closing, which is effectively the same as what I originally said, except it's more confusing stating it this way.
Also, keep in mind that in addition to buying the special warrants immediately, a deal like this normally includes additional fees reducing the proceeds to SEV. You will notice the news release states "GROSS PROCEEDS" and not just proceeds or "NET" proceeds. Additionally, it is usual to have an escape clause that may force the company to repurchase the special warrants under certain conditions. This means that SEV may be unable to fully use the proceeds unless they are certain those conditions are met -- which invalidates one of the arguments for such financing. Bought deal financing is the "whole life insurance" of capital markets.