RE:Bought deal overhangYes, all new shares following equity issue need to be allocated (locked in) first before market learns to live with any dilutive effect. In our case (VLE) this ‘bought deal overhang’ should be rather minimal because all new shares went to brokers rather than ‘free market’. Since brokers have control over new shares price some of that negative pressure is alleviated and managed especially with a small size issue. NOW, it is up to VLE to demonstrate how they are going to move forward & monetize this acquisition to grow share price…..instead of just growing number of shares.
I expect VLE to march forward to over $3 level and beyond if they show some tangible path forward with development.
G37