Canaccord, the bagholder??Some people are saying the bought deal @ $6.35 is indicative of a vote of confidence!!??
However, Canaccord, the sole bookie, was unable to sell through the entire deal. They were legally bound to guarantee to close the deal. in their Final Prospectus, the Co
stated that Canaccord will have to lower the unit price to get rid of the unsold units, and that only $2 million units were placed with their best clients belonging to the "President Club". Under the IIROC rules, the Co was permitted to impart "Inside Information" to the underwriter in order to raise any financing. Obviously, that didn't happen with any positive inside information on drilling results provided as the placement was tepid. The price is now below the placement even as the oil price skyrocketed.