Post by
tamaracktop on Feb 21, 2023 10:30am
Interesting Wording. I'll believe it when I see it!
MONTREAL, Feb. 21, 2023 (GLOBE NEWSWIRE) -- PyroGenesis Canada Inc. (https://pyrogenesis.com) (TSX:PYR) (NASDAQ:PYR) (FRA:8PY) (the “Company” or “PyroGenesis”) is pleased to announce that to date, it has received commitments in excess of $10.0 million under its private placement of units of the Company announced on February 14, 2023 (the “Offering”)
What do they mean by "commitments"?
Do they mean Expressions of Interest?
Many here likely don't know how an agency underwriting works.
How would they, most here were never brokers.
A "bought deal" is where the underwriter buys the stock from the issuer and then sells is to subscribers to the issue.
They are acting as "principals".
They are in fact the principal owners of the stock they're selling.
In a "best-efforts" offering, the underwriter doesn't own the stock they're selling, they're acting as the issuers "agents", much like a real estate agent acts for the vendor.
In this type of financing, the underwriter asks their brokers (agents) for what's referred to as "expressions of interest".
Each broker asks for an "allotment" depending on how many shares they think they can sell, and then the underwriting firm divides the shares amongst its brokers accordingly.
Sometimes, brokers are unable to sell their allotment, and the shares are turned back in.
I'm not 100% sure about the wording in this press release, but it certainly seems to me that the word "commitments" isn't the same as "orders".
If this release refers to expressions of interest, then this press release is highly misleading.
I'll believe it when I see it.
Comment by
paul03 on Feb 21, 2023 10:35am
Well you are definitely a fountain of knowledge when it comes to this stuff. Athough I disagree with you on where this company will end up, the very least I can say is thanks for sharing some of what you know from past experiences.