Interesting https://investingnews.com/daily/resource-investing/bought-deal-best-efforts-private-placement-brokered-nonbrokered/
What is a bought-deal private placement?
Bought-deal private placements are one variety of private placement a company can undertake. They take place when an investment bank commits to purchasing all the securities being issued by a company (the issuer).
This type of private placement can be a popular option for companies as it eliminates the risk of not selling all the securities that are up for offer, and it means the issuer will immediately raise the funds it needs, which is generally good news for investors. At the same time, engaging in bought-deal private placements typically means companies will receive the bare minimum of funds, as buyers will usually receive a lower price if they buy all securities at once.
Those circumstances can benefit investment banks, but can also lead to more risk — investment banks may not be able to sell all the securities they purchase, for example. There’s also the chance that the securities may decrease in value after the investment bank purchases them, which is why buyers typically negotiate a discount.
Interestingly, law firm Morrison Foerster states that bought-deal private placements are easier to accomplish at specific times. For instance, if a bought-deal private placement occurs immediately after an issuer’s earnings announcement and the filing of its latest quarterly report, chances for insider trading may be reduced and the need to update disclosure information may be eliminated.
“Waiting until the issuer’s earnings announcements and the filing of the Forms 10-K or 10-Q will also make it easier for the underwriters to conduct due diligence and for the underwriters to obtain a comfort letter from the issuer’s auditors,” the law firm notes.
Also a good source: https://en.wikipedia.org/wiki/Bought_deal
Take away: It seems waiting after Q2 (assuming its good) would have been better for the compamy (and existing shaeholders) but the issue is whether it is better for Beacon's investors to do it now...
It's true that the $9.7M contract and uplisting and a 52 week high seems fair catalysts for it but why now and not later? It will be interesting to see the extent of insider participation if any. There was also insider selling earlier this year wonder if this was related or planned accordingly.
https://ceo.ca/@newsfile/cematrix-announces-35-million-bought-deal-private
In connection with the Offering, the Company has granted the Underwriters an option (the "Underwriters' Option"), exercisable, in whole or in part, by Beacon by giving notice to the Company at any time up to 48 hours prior to the Closing Date to purchase up to an additional 6,889,000 Units at the Issue Price for additional gross proceeds of up to the maximum as permitted under the Listed Issuer Financing Exemption.
Take away: this option almost double the amount of the raise if it is exercised.... More dilution....
Price Target
https://www.cantechletter.com/2024/04/is-cvx-stock-a-buy-right-now/
Take away: Beacon issued a $0.60-70 price target back in April and CEMX decided to raise days after a 52 week high, a month after an incremental $5M increase of its credit facility... and weeks prior an anticipated Q2 reporting.
IR states that the money was not needed and that they received interest from institution which would not typically go down market in terms of market capitalization. They report potential use of the money for M&A .This could bodes well for the future but the timing is interesting nonetheless.