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Mason Resources Inc V.LLG

Alternate Symbol(s):  MGPHF

Mason Resources Inc. is a Canada-based company. The Company is focused on identifying, evaluating, and pursuing business investment opportunities. The Company holds shares in Black Swan Graphene Inc., which is focused on the large-scale production and commercialization of patented graphene products aimed at several industrial sectors, including concrete and polymers.


TSXV:LLG - Post by User

Bullboard Posts
Comment by miningboomon Dec 13, 2017 9:02am
157 Views
Post# 27145031

RE:What will this mean, is this a directed share issue?

RE:What will this mean, is this a directed share issue?A bought deal means Mason just issued a whole bunch of new shares and sold them all to National Bank.  National Bank then offers them to their Investment Advisors who will then be able to sell the shares to their clients.  So National Bank's investment banking arm makes money by brokering the deal, and their Investment Advisors make a commission for selling the shares to their clients.  National Bank is also one of the only institutions that covers Mason, and surprise surprise they have a buy rating on the stock.  But yes, in general this means that current shareholders are being diluted, and it also means we're being biluted at a $2.40 share price, which means we will probably trade down closer to that mark sometime today.  So current shareholders get smacked twice on this one.  As I said before, this is total garbage for existing shareholders.  Seriously though, when companies need to raise cash, why the $hit don't they issues a rights offering so that existing shareholders have the right to not get diluted?   I totally disagree with this bought deal.  
Bullboard Posts