RE:RE:NFG has filed PROSPECTUS SUPPLEMENT on SedarAm pretty sure it works something like this:
1) Deep pockets buys the flow thru shares @$11.48
2) Donates them to a charity
---- gets the Cdn charitable donation tax write-off
3) Charity strips the flow thru share of the tax benefits
---- above my pay grade on how specifically this works but assume they make money
4) Sell the basic share (now normalized) to special friends of broker @ $8.50
5) Shares have to be held 4 months
6) Instead, have same broker sell equal number of "other" shares that you either already own or are uncovered short for as much as possible -- today $9.00 range.
7) Pocket easy $.50/share (less commission)
8) When all said and done -- own same number of shares when 4 months is over.
Flow thru share buyer makes money
Charity makes money
Broker makes a WHOLE LOT of Money -- $2.5M from NFG and tons of different commissions
NFG gets a premium price ** above avg market price
** doesn't (of course) take into account that the brokerage "probably" orchestrated bringing the SP price down in advance of the deal closing to make it easier / more lucrative for their customers when the deal finally transpired. Whether they do this themselves or farm out the dirty work it probably explains the drop in SP from July to Aug. It's considered the "price of entry" if you want to have "the big boys" cover your stock in the junior mining sector and promote same to their customers etc etc etc etc.
NOTE: NFG itself has NOTHING to do with any of the above. They sold the shares for $11.48 which is within the high-low range of previous 4 months and that's what they get paid. What the broker does with them afterward on a "bought deal basis" is not NFG's business.
Deal closes on Tuesday Aug 24.