Pragmatist wrote: The supplement isnow available on Sedar; The price to the public is $6.
"NOTES: (1) The Offering Price was determined by negotiation between the Company and the Underwriters, with reference to the then-current market price of the Common Share"
The price was likely determined before the recent escalation. It sounds like a good deal. for ATE..
My understaning based on research last PO, is that underwriters and their officers are not allowed to participate in Canadian public offerings , unless specifically mentioned. So they are selling to the public via brokers. And they want to offload these as quickly as possible. Their reward is the commission.
Also from the supplement::
"Under certain rules of the Canadian securities regulatory authorities and the Universal Market Integrity Rules for
Canadian Marketplaces of the Investment Industry Regulatory Organization of Canada (the "UMIR"), the
Underwriters may not, throughout the period of distribution, bid for or purchase Common Shares. These rules allow
certain exceptions to those prohibitions. The Underwriters may only avail themselves of those exceptions on the
condition that the bid or purchase not be for the purpose of creating actual or apparent active trading in, or raising the
price, of the Common Shares."
I appologize for beating this to death, but there have been several posts suggesting that there are some underhanded dealings associated with this PO. While US offerings might somehow allow this, this is less likely in Canada due to trading restrictions such as the above. Also the terms of a PO here are generally agreed to very quickly, partly to prevent particpants from taking early advangage of this info.
I might be wrong but that's how I see it.