RE:RE:RE:New Issue lead broker is BMOedx wrote: theCurse wrote: 1northumberland wrote: Why can't BMO suppprt this stock at issue - $1.68?
So much for BMO being a player imo
Seriously - you are worried on day 1 after the financing that it fell below the financing point?
The reason for the sell-off is that it appears the financing (at a decent price and NO warrants) is due to needing even more funds than previously indicated to finish VL.
*That* is the downward pressure - not the financing itself. Financing was clean - no warrants. 50 day moving average is 1.45. I don't buy into significant shorting either.
Also for the guy thinking that BMO is "buying" this for themselves (sure sounds that way!)...you need to look up how these financings work.
And I see our favourite Moose is again grazing in the "funny grass" pasture again. I actually would enjoy meeting you.
that said, at least a great day for gold itself.
tC
Almost every bought deal financing I've seen has resulted in the price dropping to the financing price. Why wouldn't it? An arbitrager that has access to the bought deal can either sell long shares they own or short for a profit at any price above the bought deal. So I disagree with you - I think the price action is entirely due to the financing (not that it matters).
The financing was clean though. This is an extremely tough financing market for precious metals juniors so the lack of warrants is great. Probably related to the GDX listing - I'd bet the parties that participated in the block sale of CXB shares at one year highs to Van Eck are also participants in the warrantless bought deal.
I completely understand how arbitrage works. For months before the MOZ/CXB deal closed, MOZ was usually 1-3 cents behind the ratio. And i realize every PP/financing causes a short term hit.
CXB has been above 1.68 for only 10 trading days with no discernable change in daily volume so highly unlikely much of a short position was built. not doubt there is minor element but I'm pretty sure most of the financing went to entities that plan on more than just a few pennies. now if there had of been warrants that would have been another issue altogether.
And it does matter. what matters is that CXB seems to have received a bill for $50-100M in the mail that they did not expect (or at least the shareholders did not). So we probably just got diluted 9% and still have the same future assets we thought we had yesterday. and that is why it went way below 1.68 (down to 1.61) only to be salvaged by an incredible day by gold and some help by bmo. Anyone could have bought below 1.68 today and been in a better position than those involved in the financing.
And that does not surprise me at all...another reason MOZ was taken out at the level it was. years worth of incompentence by senior management (so how much did the delay in EA cost every MOZ sh - probably 1/2 to 3/4 of their investment). The PP when the CXB deal was announced - i was like, i doubt that will finish it knowing these (MOZ) clowns.
Also, I am sure VanEck is super pleased with the timing of this. Weird timing for sure.
anyway, i have not issue with the financing.
tC